23 Countries Now Abandoning US Dollar

[Hydrogen]

A new world monetary system is being set up right now which will completely kill the US dollar, which is the world's reserve currency.

23 countries (60% of the world's GDP) are setting up swap lines which bypass the dollar and SWIFT, which is the dollar-based worldwide financial transaction system.

These countries include Russia, China, India, and even Germany, France, and the United Kingdom.

I seem to remember reading news articles claiming russia was searching for alternatives to the SWIFT banking network 10 years ago. If this news is true, it has been a long time in coming.

Russia, china, india, germany, france and the UK being involved sounds questionable. Germany and france are EU members. The UK left the EU under #brexit. Both china and india have troops stationed on their shared border and tensions have run high for a future war between the two. There have also been tensions between russia and germany as russia continues its invasion of ukraine. They say that politics makes for strange bedfellows. But that could be pushing things a little too far.

De dollarization has been a legitimate movement for some years now. Major nations have dropped the US dollar as an international reserve currency. Some have gone so far as to cease oil based transactions using the US dollar.

While the list of nations they claim are involved in creating an alternative to SWIFT might sound impressive on the surface. The history of these types of joint international attempts at development have not produced good results.

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[wxa7115]

I am a bit disappointed that the article later says:

Historically, new world reserve currencies are backed by gold.

Prices just dropped on gold and silver. NOW it the time to buy! Protect your wealth my friends.

As if gold and silver will be the next world reserve currencies.

The optimistic me says that Bitcoin will be the next world reserve currency after the dollar, but that is depending on countries using it, which's already starting to happen in some countries. Sadly the article dod not say which fiat currency is the most viable alcandidate to replace the dollar (the yuan?)

I really believe that before we see a hard form of money becoming the world reserve currency we will see more attempts by governments to keep the fiat system afloat.

One of the alternative scenarios I think it would happen is that instead of a single currency having such status governments could try to move to a system with several reserve currencies or a single currency which was backed by a basket of fiat currencies, now I believe such a system will be more unstable than the one we currently have in place, but governments may try something like this before they are forced to accept a currency backed by a hard asset.

[Techkoy407]

I don't think it will have much of an impact.
because it is seen from the development of the US dollar
quite stable

from year to year US dollars
have a stable price

although many countries raise interest rates, in the hope that the value of their currency will be high,

like
Argentina. The central bank's benchmark interest rate is currently 69.5%

ghana 19%
Nigerian 14%
Brazil 13.75%

However, interest rates that are too high make businessmen and households to borrow money

companies can fire their employees
and households are forced to reduce their spending,

under these circumstances the economy could slip into a recession.

[bittraffic]

So where is this BRICS bank located?

I have also watched some Bloomberg news about countries abandoning the use of USD in trading which started when Russia demands the use of the Ruble. The comments of the people were, Yuan will become a reserve because it's the 2nd largest economy but why would Russia allow this also that's a question.

If they are to make it fair as they are agreeing to abandon USD, they should at least remove the possibility that any of them can just take the foreign reserve of a country. Bitcoin will be more suitable as the reserve currency.

[pooya87]

It does seem to becoming a little less used in other countries around the world, but having said that it's still used in places like Asia quite a lot. I know when I've visited, they actually prefer US dollars to the local currency, probably because they used to get a decent exchange rate. Not sure if that's still the case now though.

Dumping USD is more about countries abandoning it as their trade currency, so the volume is in trillions of dollars. For example some sources report that Iran exported $40 billion oil last year (the real value is actually unknown). Almost all the money was received in anything but USD (gold, other fiats and even bitcoin were used). The volume of what regular people want is barely in millions.

I believe the thing about people preferring USD is not about the exchange rate itself but about the period where the rate is going up as their local currency tanks. For example a little more than 3 years ago our local currency tanked hard and during those 6 months people were rushing to exchanges to convert their fiat to anything else including Dollar, Euro, gold, etc. If you paid anybody in USD those days, they would have been more than happy to accept it and even give you a discount.
These days on the other hand, most people don't go for that trade since the exchange rate has been relatively fixed with some swings so the incentive is lower although it still exists.

That's basically like paying someone in bitcoin when price is going from $20k to $70k (they'll love it) compared to paying someone in bitcoin during these days when price is not going above $25k and sometimes even drops lower to $17k (they usually don't go for it).

[Mauser]

If the countries abandon the US dollar, establish a new currency, what will be the impact on the US dollar?

I didn't read anything about such a move on the mainstream media. Are you sure this is legit? Quickly googling the topic found me an article from Truth and Action which is from 2015. Right now it seems not really realistic to have all the major European countries work together with China to create their own currency away from the US Dollar. I wouldn't bet on enough public support for such a move. It's one thing to try and move away from the US Dollar as the main reserve currency in the world. But what is going to be the alternative? I don't think China will give into a new currency that is controlled by Europe or India, and same goes the other way round. Europe would never accept a new reserve currency that is controlled by China.

[Fortify]

A new world monetary system is being set up right now which will completely kill the US dollar, which is the world's reserve currency.

23 countries (60% of the world's GDP) are setting up swap lines which bypass the dollar and SWIFT, which is the dollar-based worldwide financial transaction system.

These countries include Russia, China, India, and even Germany, France, and the United Kingdom.

If the countries abandon the US dollar, establish a new currency, what will be the impact on the US dollar?

What a joke of an idea. You clearly are clueless about how the financial world works and are looking to spin some patriotic angle on this that is close to your heart - very clearly biased. While Russia has been isolated and by extension forced to try selling their oil and gas to other countries without trading US dollars (because they can no longer use them for anything productive), other countries are laughing at how weak they have become that they will require Russia to accept their own currencies as they have no choice. China is making moves to try and supplant the US dollar but have such an enclosed economic system that it can never replace the open and vibrant US economy, so other countries will never trust it on the same level while the current Chinese government is in place.

[blue_hurricanger]

 "Now Abandoning US Dollar" is a wrong statement. They already did it any time the world's economy is in a rocky place. Although yeah, some countries did try to reduce their over-reliant on the USD use on trading or the petrodollar but all seems very small, insignificant to me. Call me when countries on this list below start to offload their US t-bond massively instead of hoarding it.

Basically, the world is in global mode where countries are indebted to each other. See Major Foreign Holders Of Treasury Securities from Department of the Treasury/Federal Reserve Board,
August 15, 2022. Not just you and your wife, as well as other Americans but many US allies like Japan, UK, France,... and even China, brought US bonds.
source: https://ticdata.treasury.gov/Publish/mfh.txt

snip

Most sensible take of all in this thread. Anyone who thinks the dominance of the USD can be replaced in a short amount of time, knows nothing about it.

[YUriy1991]

It seems that this statement is inaccurate. The US dollar is a fiat currency, meaning that the value of each US dollar is backed by confidence in the US government and not by physical commodities such as gold or silver.

The dollar is the legal currency in the United States, and is also the unit of exchange of choice for international transactions. And although there are some countries that use currencies other than the US dollar such as China, the UK and Canada, at this point I feel confident to say that leaving the US dollar is very unlikely, almost impossible.

[Getmon]

Your source is an anti-American site. Should we expect to believe you? You're spreading lies. Majority of the nations you mentioned op is not true. Russia and China wanted to get out and fight US dollar domination but even India won't commit to fight the US dollar. India attempting to balance each sides. India is a close friend of Russia but it is an enemy of China. India is also a member of the QUAD together with the United States, Japan and Australia. Germany, the United Kingdom and France have their own Euros but they won't totally abandon the US dollar.

Op I suggest you find a source that is not funny and biased the next time you post here.

[Swordsoffreedom]

A new world monetary system is being set up right now which will completely kill the US dollar, which is the world's reserve currency.

23 countries (60% of the world's GDP) are setting up swap lines which bypass the dollar and SWIFT, which is the dollar-based worldwide financial transaction system.

These countries include Russia, China, India, and even Germany, France, and the United Kingdom.

I seem to remember reading news articles claiming russia was searching for alternatives to the SWIFT banking network 10 years ago. If this news is true, it has been a long time in coming.

Russia, china, india, germany, france and the UK being involved sounds questionable. Germany and france are EU members. The UK left the EU under #brexit. Both china and india have troops stationed on their shared border and tensions have run high for a future war between the two. There have also been tensions between russia and germany as russia continues its invasion of ukraine. They say that politics makes for strange bedfellows. But that could be pushing things a little too far.

De dollarization has been a legitimate movement for some years now. Major nations have dropped the US dollar as an international reserve currency. Some have gone so far as to cease oil based transactions using the US dollar.

While the list of nations they claim are involved in creating an alternative to SWIFT might sound impressive on the surface. The history of these types of joint international attempts at development have not produced good results.

Figuring out how to eliminate dependence on the USD has been around for a long time, but this progress has been fraught with previous setbacks. If I remember correctly, China is the country that initiated the movement to remove the dollar from international payments. Most recently, the BRICS bloc, led by Russia and China, is also proposing an alternative to the USD. The removal of USD in payments between members of the bloc was made in order to support national currencies such as rubles, rupees and yuan. It can be seen that they are doing well within the bloc, but international adoption is unlikely. I think it will never happen.

[virasisog]

A new world monetary system is being set up right now which will completely kill the US dollar, which is the world's reserve currency.

23 countries (60% of the world's GDP) are setting up swap lines which bypass the dollar and SWIFT, which is the dollar-based worldwide financial transaction system.

These countries include Russia, China, India, and even Germany, France, and the United Kingdom.

If the countries abandon the US dollar, establish a new currency, what will be the impact on the US dollar?

What a joke of an idea. You clearly are clueless about how the financial world works and are looking to spin some patriotic angle on this that is close to your heart - very clearly biased. While Russia has been isolated and by extension forced to try selling their oil and gas to other countries without trading US dollars (because they can no longer use them for anything productive), other countries are laughing at how weak they have become that they will require Russia to accept their own currencies as they have no choice. China is making moves to try and supplant the US dollar but have such an enclosed economic system that it can never replace the open and vibrant US economy, so other countries will never trust it on the same level while the current Chinese government is in place.

The US economy could still stand firm no matter how many countries would abandon dollar. That will be hard for other countries knowing that they have the central bank with them. There were many currencies that tried to beat dollar but usd will always have an advantage because it's being used as an international currency. Huge countries will have a hard time pursuing this plan in case it's true.

[zasad@]

https://cointelegraph.com/news/bis-marks-cbdc-pilot-as-successful-with-22m-transacted
BIS marks CBDC pilot as ‘successful’ with $22M transacted
Over $12 million in value was issued in the pilot with commercial and central banks in Hong Kong, Thailand, the UAE and China taking part.

Soon most countries will start using CBDC and the lock button will be in the USA.

[fullhdpixel]

What will the likes of the new currency and system be? consider if it's not cryptocurrency then it's not going to attract more anticipated audience because as at moment, bitcoin is the only trending digital currency on the internet and that is the center of attraction on the world's attention, any currency that will not give decentralization a chance to come into reality then it's as worthy of nothing than a modern CBDC we all have been avoiding as against bitcoin.

Maybe the likes of this new currency and its system is slightly different from the previous versions for it to be considered the dollar killer. We are not sure yet if this was CBDC the ones they are talking about but even if it's not related to cryptos, it is still going to attract more audience. They are in fact more confident about it than the cryptos.

It seems like you praised bitcoin too much there. BTC isn't actually the only trending digital currency. Like I said earlier, there are now CBDC's which is also gaining a popularity right now. This isn't going to be the last but I am sure they will invent more currencies in the future to possibly beat the other.

[Dunamisx]

What will the likes of the new currency and system be? consider if it's not cryptocurrency then it's not going to attract more anticipated audience because as at moment, bitcoin is the only trending digital currency on the internet and that is the center of attraction on the world's attention, any currency that will not give decentralization a chance to come into reality then it's as worthy of nothing than a modern CBDC we all have been avoiding as against bitcoin.

Maybe the likes of this new currency and its system is slightly different from the previous versions for it to be considered the dollar killer. We are not sure yet if this was CBDC the ones they are talking about but even if it's not related to cryptos, it is still going to attract more audience. They are in fact more confident about it than the cryptos.

It seems like you praised bitcoin too much there. BTC isn't actually the only trending digital currency. Like I said earlier, there are now CBDC's which is also gaining a popularity right now. This isn't going to be the last but I am sure they will invent more currencies in the future to possibly beat the other.

I got your point here, now consider the topic from OP thread saying "23 countries now abandoning US Dollars" to me if I will go by what you just say then it makes no difference than jumping from frying pan to fire, CBDC is just a digital version of the usual fiat we spend each day, but however, here we are talking about the introduction of something new into the system other than fiat, other cryptocurrencies could pose more dangers because they were also centralized and we need to identify only bitcoin being an alternative to this centralized system of doing something new, the people actually want a change but are other cryptocurrencies the solution or CBDC? No.

[Vinaa77]

If the countries abandon the US dollar, establish a new currency, what will be the impact on the US dollar?

That's a smart idea they did, so that the dependence of the currency in a country is no longer on the value of the dollar. Today we know that all local currencies of a country are guided by the value of USD, if they are not able to follow it, there will be inflation in the value of that currency. While the USD will never occur inflation.

[justdimin]

Your source is an anti-American site. Should we expect to believe you? You're spreading lies. Majority of the nations you mentioned op is not true. Russia and China wanted to get out and fight US dollar domination but even India won't commit to fight the US dollar. India attempting to balance each sides. India is a close friend of Russia but it is an enemy of China. India is also a member of the QUAD together with the United States, Japan and Australia. Germany, the United Kingdom and France have their own Euros but they won't totally abandon the US dollar.

Op I suggest you find a source that is not funny and biased the next time you post here.

I am pretty sure that there are "anti-American" nations as well, hence why there is a slight truth that there could be some nations leaving dollar for sure. Doesn't mean it is these nations, it just means that there could be some nations and governments who hate America and could be leaving dollar as much as possible.

Looking at the treasury of many nations in the image, it is not shocking that some of them have lesser, plus there is still no situation where it is fully gone, it is just "a little bit less", it’s not abandoning levels of it at all, it is simply just leaving it aside for a while, that’s it. So, I would assume that there could be slight truth, not because it is not an anti-American source, it is, but there are anti-American nations too.

[AmoreJaz]

Your source is an anti-American site. Should we expect to believe you? You're spreading lies. Majority of the nations you mentioned op is not true. Russia and China wanted to get out and fight US dollar domination but even India won't commit to fight the US dollar. India attempting to balance each sides. India is a close friend of Russia but it is an enemy of China. India is also a member of the QUAD together with the United States, Japan and Australia. Germany, the United Kingdom and France have their own Euros but they won't totally abandon the US dollar.

Op I suggest you find a source that is not funny and biased the next time you post here.

I am pretty sure that there are "anti-American" nations as well, hence why there is a slight truth that there could be some nations leaving dollar for sure. Doesn't mean it is these nations, it just means that there could be some nations and governments who hate America and could be leaving dollar as much as possible.

Looking at the treasury of many nations in the image, it is not shocking that some of them have lesser, plus there is still no situation where it is fully gone, it is just "a little bit less", it’s not abandoning levels of it at all, it is simply just leaving it aside for a while, that’s it. So, I would assume that there could be slight truth, not because it is not an anti-American source, it is, but there are anti-American nations too.

at any case, the impact won't be easily seen in the world market. i also believe that there's some truth on this. but not totally abandoning the USD, but not using it the way they did. we can't expect every nation to rely on USD, of course, they have their own plans depending on what they think is favourable to their country. but as of now, USD is still the major fiat currency used by countries around the world.

[samcrypto]

at any case, the impact won't be easily seen in the world market. i also believe that there's some truth on this. but not totally abandoning the USD, but not using it the way they did. we can't expect every nation to rely on USD, of course, they have their own plans depending on what they think is favourable to their country. but as of now, USD is still the major fiat currency used by countries around the world.

They can't just abandoned USD since they have the reserve in FED probably, they are just taking a different path where they can have their own currency which other currency can also consider to adopt. Digital money is their solution as of the moment, and let's see if they can totally affect USD and the US market itself. Some are US allies so I also doubt that they are abandoning USD, we should read the whole context and understand their plan with regards to this.

[Joshapat]

USD which is increasingly strengthened, including in the euro, making many countries worry that if there is a long -term economic problem, USD which is currently an international currency certainly has good potential because it is managed Leaving USD is they think as a short -term solution.