Ditch the Dollar

[Yamane_Keto]

Recently, some countries began to use their local currencies in trade with each other. It is true that there was no trade union between these countries, but these movements began to increase. This topic will shed light on some of these countries:

China, Brazil strike deal to ditch dollar for trade

BRASILIA - China and Brazil have reached a deal to trade in their own currencies, ditching the United States dollar as an intermediary, the Brazilian government said on Wednesday.

The deal, Beijing’s latest salvo against the almighty greenback, will enable China, the top rival to US economic hegemony, and Brazil, the biggest economy in Latin America, to conduct their massive trade and financial transactions directly, exchanging yuan for reais and vice versa instead of going through the US dollar.

“The expectation is that this will reduce costs... promote even greater bilateral trade and facilitate investment,” the Brazilian Trade and Investment Promotion Agency (ApexBrasil) said in a statement.

China is Brazil’s biggest trading partner, with a record US$150.5 billion (S$200 billion) in bilateral trade last year.

The deal, which follows a preliminary agreement in January, was announced after a high-level China-Brazil business forum in Beijing.

Pakistan, China agree to trade in yuan

Pakistan on Monday announced an agreement with China to use Chinese currency for bilateral trade to end the burden of relying on U.S. dollars.

'China and Pakistan agreed to start trading in the yuan instead of the dollar,' Fawad Chaudhry, minister of information, told reporters in Islamabad.

This agreement, reached during the Pakistani premier’s current visit to China, would help Pakistan get rid of the dollar burden in $15 billion of bilateral trade, he added.

Imran Khan’s four-day official visit to China is ending Monday.

The move to Chinese currency would also help both countries replace the U.S. dollar for their transactions and investment in the multi-billion dollar China-Pakistan Economic Corridor (CPEC).

This June, the State Bank of Pakistan formally allowed both public and private enterprises to use Chinese currency for bilateral trade and investment activities.

China and Russia ditch dollar in move toward 'financial alliance

Russia and China are partnering to reduce their dependence on the dollar -- a development some experts say could lead to a "financial alliance" between them.

In the first quarter of 2020, the dollar's share of trade between Russia and China fell below 50% for the first time on record, according to recent data from Russia's Central Bank and Federal Customs Service.

The greenback was used for only 46% of settlements between the two countries. At the same time, the euro made up an all-time high of 30%, while their national currencies accounted for 24%, also a new high.

Russia and China have drastically cut their use of the dollar in bilateral trade over the past several years. As late as 2015, approximately 90% of bilateral transactions were conducted in dollars. Following the outbreak of the U.S.-China trade war and a concerted push by both Moscow and Beijing to move away from the dollar, however, the figure had dropped to 51% by 2019.

Alexey Maslov, director of the Institute of Far Eastern Studies at the Russian Academy of Sciences, told the Nikkei Asian Review that the Russia-China "dedollarization" was approaching a "breakthrough moment" that could elevate their relationship to a de facto alliance.

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[Zlantann]

I think these trade agreement between these nations have some political undertone. It is clear that China is leading an economic war to whittle down the financial influence of the United States. I support the idea of using local currency for international trade because it helps to reduce the cost of such transactions and also eradicate the influence the dollar has over these economies. I am pained by the amount most developing nations have to spend on international trade because of the dominance of some currencies. These expenses would have been used to provide basic amenities for these poor nations. But these policies should be done with good intentions and not just to score political points.

[Flexystar]

China and Russia's alliance can easily form for the sake of friendly nations and also quite a good neighbor when it comes to war. However, I am damn sure that Brazil and Pakistan won't last for very long. In the case of the Brazilian alliance, the US is the biggest obstacle for them and they would be let down by them in no time. When it comes to Pakistan, well what to say about that country, they already have their own issues of daily needs so what kind of alliance they are going to form with China? If they do it they are anyway lowering their own value in the process and if they do it, then they would surpass historical charts against dollar value. The basic needs are so high that people would prefer to die out of hunger but they cant really survive that situation. China is just plotting their next strategy to acquire the land and nothing else.

[cabron]

This is happening everywhere like there is a USD revolt.
China through its BRI had built a large coalition that will utilize thier native currencies for bilateral trade but China is more like promoting Yuan for international trade and it's actually being accepted by different countries.

India also has such a goal that they made several international trade settlements in Rupees. Kenya also ditches USD for shillings and in the middle east, PetroYuan is gaining.

[coupable]

The whole world knows that the dollar is no longer a safe haven, and almost everyone suffers from it. The problem is in the US pressures that impose their control over the world economy by controlling the production of the dollar, which the world considers the official criterion for determining the prices of important products such as gold, oil and gas.
In addition to the examples you mentioned, there are other countries that are considering adopting alternatives to the dollar in their dealings with China, which will strengthen the position of the yuan. There are countries that are considering choosing to launch their CBDC currency to facilitate transactions with allied parties.

[Dickiy]

Western hegemony led by America with the influence of the dollar looks to be getting worse and worse as the day goes on, the crises in Uncle Sam's country are getting more serious and inflation is no longer inevitable so that it makes people in the lower and upper classes feel suffocated by the tug-of-war of rising interest rates. Of course it is an opportunity for the United States Rivals to take US customers one by one and leave the dollar which is an alternative currency for global trade and foreign exchange, countries that have the courage and try to get out of the dollar ecosystem is a great opportunity, and as we can see from the data what was presented by the OP, they began to ally themselves through a trade cooperation approach and maybe for the next is military cooperation and forming forces such as NATO as a product of solidarity and resistance to western hegemony.

[tjtonmoy]

With this, the Dollar's global reserve currency status is going to face some serious issue. I don't know what china is trying to pull off here, but I heard some news about some banks in China accepting crypto again. What is their motive? With the recent inflation and now this.
It is good news in a way, but the world economy will face some ups and downs, that's for sure. It's like 2 sides of the same coin. Hopefully it will be interesting to see what in going to come from this and who will be benefiting and who will be losing.

[tabas]

AFAIK, India is also part of it based from the other source that I've read but it was an incomplete information but we'll see. It's gonna be a bigger problem for the dollar if Saudi Arabia starts to follow this type of alliance from countries that have been forming an alliance trade with China and Russia. The US/EU doesn't like that and that's why they're putting sanctions from this possible trade up alliance. But I'll take it from those economy, political and internationa relationship experts on what they think about this building formation alliances.

[pooya87]

It is called dedollarisation and it has been going on for a very long time (at least the past decade) but it started speeding up in the past year and ever since US economy started falling apart and FED decided to export more of US inflation to other countries.
I cover more cases in this topic: https://bitcointalk.org/index.php?topic=5432581.0

Basically the whole world (even US allies) have always wanted to dump the dollar after Nixon administration, but for a lot of reasons (including lack of independence) they have been slow. This is also why we are currently only seeing countries with more independence from US dumping the dollar while others slowly joining in at a smaller scale.
Although Saudi regime as the 51st US state is an exception, they have no independence but are joining in because they were forced to; essentially after Aramco was hit and their oil production was cut by half.

[stompix]

Oh yeah, the ditching of the dollar, the never-ending struggle of some counties to make their worthless currency worth something.

It's not hard, it's not politics, it's simple economics why they don't want to use the $, and that is because they can't afford it anymore, Weimar style!

Go to an exchange website and check the pair over 10 years:
https://www.xe.com/currencycharts/?from=USD&to=INR&view=10Y
USD to INR +51.00%
https://www.xe.com/currencycharts/?from=USD&to=BRL&view=10Y
USD to BRL +151.93%
https://www.xe.com/currencycharts/?from=USD&to=PKR&view=10Y
USD to PKR +188.33%
https://www.xe.com/currencycharts/?from=USD&to=RUB&view=10Y
USD to RUB +145.74%

And a special mention of course:



How bad can your sight be and how twisted is your mind to think this is killing the dollar and that dedollarization is in full swing and the USD is dying?
Dying by doubling and going tenfold in value against the currencies that were supposed to kill it?

This is like the Dash and Bitcoin SV planning on killing BTC by allowing only trades between them.  
If they are ditching the $, thus this means selling $ reserve and dumping it for their currency, why is their currency still depreciating against the greenback?

Oh, but wait, I have one question for everyone here:
If the $ is dying, why don't you ask your campaign manager to be paid a fixed sum in INR or RUB or Rials and you are all fine with $?   
Might it be that behind the propaganda, when it hits your wallet the reality is different?

[slapper]

It's utterly riveting, folks, to watch nations break free from the age-old reliance on the US dollar for global commerce. Sure, the dollar's been king for a long time, but let's not forget, there are other players in the game. By utilizing their domestic currencies in commerce with one another, these nations are stimulating increased bilateral trade and investment, diminishing costs, and nurturing solid economic connections. This move might unlock new possibilities and openings for international trade and cooperation.

Additionally, this transition to employing local currencies could contribute to superior financial steadiness and autonomy for these countries. By depending less on the dollar and more on their own legal tender, they can decrease their susceptibility to global economic swings and crises.

To wrap it up, this shift away from the dollar, while gutsy, could yield remarkable perks for these countries and the international economy at large. Let's welcome this novel epoch of global trade and teamwork with open hearts and a positive outlook.

[doomloop]

Recently, some countries began to use their local currencies in trade with each other. It is true that there was no trade union between these countries, but these movements began to increase.

Is it the beginning of some kind of cold war led by China? The primary purpose of these bilateral trades isn't only to cut costs in my opinion, and China probably is doing its best to lessen the dominance of the US dollar over the world economy by initiating these trades with different nations, they know that other countries will follow suit knowing they can do it to reduce costs and to become a bit more independent when it comes to using a currency for international trade.

I wonder how will things be if USD isn't the leading currency of the world and isn't used for the pricing of almost everything that you see or buy locally or internationally either through the internet or in real life.

[Alpha Marine]

The whole world knows that the dollar is no longer a safe haven, and almost everyone suffers from it.

No fiat currency is a safe haven. We all get affected by the dollar because that's the world's currency in international trade. China is just trying to strengthen its yuen by making these deals so I don't think it's much of a difference in the long run. However we do it, there's always going to be that currency that we used to measure the value of things on the international market, whichever it is; pounds, dollars, yuen, its not much of a difference because if that currency or economy suffers, most of the countries dependent on it suffers.

[FrozenBit]

Countries with large economies and high growth potential are working together to get rid of the influence of the dollar, something interesting that I think many people should pay attention to is that the countries in the BRICS bloc accounts for about 42% of the world's population and 23% of global GDP. Therefore, the BRICS bloc contributes greatly to the development of the global economy. Along with that, the countries in the BRICS bloc are increasing their trade with other countries in the world. This is a way for countries in the bloc to increase competition and attract investment from other countries.
There is no doubt that the dollar is losing on the economic front against the yuan, I am very much looking forward to how the US will change in the near future, especially as I am not very impressed with the US dollar. machine that runs the current country.

[Smack That Ace]

There's been too much pressure on the USD in recent years. I would like to add that France and China also have the first trade agreement using Yuan instead of USD or Euro.
https://news.italy24.press/trends/429400.html

Although it is still unknown what the future of the USD will hold in the face of the rise of countries that are turning their backs on the US. But I wouldn't be surprised if the USD collapsed and was replaced by a new currency. That's the law of life, no one can stay on top forever, in the history of the world, there have been 5 collapses of leading currencies. USD has dominated for the past 100 years, and it is time for us to have another currency to replace it.

[pooya87]

Is it the beginning of some kind of cold war led by China? The primary purpose of these bilateral trades isn't only to cut costs in my opinion, and China probably is doing its best to lessen the dominance of the US dollar over the world economy by initiating these trades with different nations, they know that other countries will follow suit knowing they can do it to reduce costs and to become a bit more independent when it comes to using a currency for international trade.

It's mostly revenge in my opinion. After the Opium War waged on China they went back to an old ideology that basically says "be like grass, bend but don't break". They built their economy up from having 85% of their massive population in absolute poverty to having 0% absolute poverty and the strongest economy at present. They did that by "bending" but not "breaking".
Now they are taking revenge.

The only thing that should matter to the rest of us is to not allow China to replace US after the collapse of United States like Soviet Union did before it.

[DrBeer]

Fans of populism, of course, "clap their hands", rejoicing. True, they do not understand that in fact, the situation is diametrically opposite ...

I'll start a little from afar. Among the countries included in this union, so to speak, only one country is reasonably developed, in terms of the economy and a certain technological level of development. This is, as you all know, China. And it's not just that the slogan "abandoning the dollar" has turned, in reality, into the slogan "everyone except China is switching to yuan. China remains with dollars." Why is that ? Because of all these "equal" members of the union, China becomes the OWNER of this union, and its satellites become its subordinates, whose economy will soon be completely dependent on China.

At the same time, the Chinese economy depends on the dollar. Therefore, China "supported" this idea, but with a small caveat - China did not abandon the dollar, and "put" its "subordinate" allies on the yuan

[Wind_FURY]

Oh yeah, the ditching of the dollar, the never-ending struggle of some counties to make their worthless currency worth something.

It's not hard, it's not politics, it's simple economics why they don't want to use the $, and that is because they can't afford it anymore, Weimar style!

Go to an exchange website and check the pair over 10 years:
https://www.xe.com/currencycharts/?from=USD&to=INR&view=10Y
USD to INR +51.00%
https://www.xe.com/currencycharts/?from=USD&to=BRL&view=10Y
USD to BRL +151.93%
https://www.xe.com/currencycharts/?from=USD&to=PKR&view=10Y
USD to PKR +188.33%
https://www.xe.com/currencycharts/?from=USD&to=RUB&view=10Y
USD to RUB +145.74%

And a special mention of course:



How bad can your sight be and how twisted is your mind to think this is killing the dollar and that dedollarization is in full swing and the USD is dying?
Dying by doubling and going tenfold in value against the currencies that were supposed to kill it?

This is like the Dash and Bitcoin SV planning on killing BTC by allowing only trades between them.  
If they are ditching the $, thus this means selling $ reserve and dumping it for their currency, why is their currency still depreciating against the greenback?

Oh, but wait, I have one question for everyone here:
If the $ is dying, why don't you ask your campaign manager to be paid a fixed sum in INR or RUB or Rials and you are all fine with $?   

Might it be that behind the propaganda, when it hits your wallet the reality is different?

Plus the narrative is, it will be the Chinese Yuan that's going to replace the U.S. Dollar, and that it's going to happen "soon". But what the people who push the narrative never researched is that China is one of the largest HODLers of the U.S. Dollar. It would be laughable if they'll cause its destruction, and burn the value of their own assets.

China's population is also getting old. Their fertility rates are going down, and probably by 2050, they will have more old people than young people who are under 25. What will that do to their GDP, and the future of their economy?

[hugeblack]

Will all these efforts succeed in reducing dollar reserves globally? I see that the dollar is still the number one reserve currency, even with all the damage that the Fed is causing to countries, many countries still keep the dollar and prefer to deal with it instead of many currencies.
These deals are considered an attempt to put pressure on the United States from those countries, but in the end, when the choice is between the dollar and other currencies, I think that many will choose the dollar.

Check Foreign_Holders_of_US_Debt_2022

[Gyfts]

China's strategy for long term development is that they offer economic concessions to certain countries and make the country dependent on them. When that dependence forms, the country is at the whim of China -- should they ever be at odds, China cuts off the economic ties and isolates the dependent country. They tried this strategy in some African countries in the 90's and early 2000's.

Ditching the dollar for the adoption of Yuan makes USD weaker and merely puts a bandage onto a bigger problem which is centralized currency.

Basically the whole world (even US allies) have always wanted to dump the dollar after Nixon administration, but for a lot of reasons (including lack of independence) they have been slow. This is also why we are currently only seeing countries with more independence from US dumping the dollar while others slowly joining in at a smaller scale.
Although Saudi regime as the 51st US state is an exception, they have no independence but are joining in because they were forced to; essentially after Aramco was hit and their oil production was cut by half.

Unfortunately the U.S. became too heavy handed with sanctions and countries are realizing it isn't worth it to have an unstable country that pegged directly to U.S. foreign policy.