Ditching US dollar

[Gladitorcomeback]

Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. Russia is also part of BRICS while Iran will join in the Jan 2024.

Now news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?

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[Die_empty]

Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. Russia is also part of BRICS while Iran will join in the Jan 2024.

Now news come out that both countries are trying to ditch Us doller for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollers?

Is Iran and Russia still trading with the US dollars? How can these two nations known for their anti-western stance still be trading in the US dollars now? They should have stopped trading with the USD a long time ago because the US has made them suffer from economic hardship because of sanctions.

However, it will be difficult to trade without the US dollars in the current global economic system. How many countries will be willing to accept the Iranian Rial or the Russian Ruble as payments for international trade? They will still have to convert these currencies to the dollar or other widely accepted currency for them to trade with other countries. This agreement to ditch the dollar will only benefit Russia and Iran's trade relationship. The most potent currency that would have competed strongly with the dollar was the proposed BRICS currency. It was expected that it would be launched this year, but sadly the conference in South Africa produced no significant impact.

[Lucius]

~snip~

Maybe it's a local thing, but I see that you wrote "doller" several times instead of "dollar".

As for the fact that some countries want to reject or have already rejected the US dollar, that is a matter of their personal choice - and as far as I know, even before the war in Ukraine, the largest Russian company switched its oil trading from the US dollar to the euro. Today, that trading can be in rubles or rials or in some third currency if the countries so agree.

The US dollar is still the world's reserve currency, but just today I read that Saudi Arabia and China have concluded some kind of agreement where they are also moving in the direction of trading in their national currencies. I am not surprised at all, because it is not realistic to expect that countries like Russia or Iran or even China do not try to be less dependent on the US dollar.

History has shown that nothing lasts forever, neither empires nor currencies.

[0t3p0t]

Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. Russia is also part of BRICS while Iran will join in the Jan 2024.

Now news come out that both countries are trying to ditch Us doller for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollers?

For me it only has slight impact as long as Saudi Arabia is still there to cater the needs of majority of other countries oil demand because they trade in dollars. What matters most to this oil trade is the route where the oil came from because of the fact that there are hostilities and ongoing wars in that region that is why some countries are sending warships to protect the supply route. It is really hard to beat the leading currency which is dollar even if the enemies of the US use their own local currency in trading oil and other resources.

[Faisal2202]

Now news come out that both countries are trying to ditch Us doller for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollers?

Saudi Arabia is also part of BRICS and it also a big source of oil, maybe not bigger than Iran but it do have big resources, and talking about Iran going against the US dollar is not something new, because back in time, NIOC has made many tries to avoid using US dollars but you know they were forced. Well, the same thing would have happened with Iran which happened with Iraq, but now they have taken the support of BRICS.

Talking about Russia, even if they are a big source of oil and are good competitor of the USA, but still they might have to trade using US dollars while making trades with the US. Overall, I don't think US will be in any danger if these countries will starts to make deals in local currencies, that's because they ways to make deals in local currencies are full of difficulties and these difficulties will increase more by the ones who might be in danger due to this.

[moneystery]

it is very likely that transactions between brics countries will be carried out using the currencies of member countries, before the brics currency is launched. the advantage of them ditching the dollar is that they can increase the use of their own country's currency in international trade, save costs, improve the country's economy, and better trade relations.

this may have a significant impact on the usd currency, because so far the dollar has been strong because it is used in international trade, but after countries with large economies throw away the dollar and replace it with their own currency, it will be a stumbling block for america and the dollar.

but perhaps this dedollarization was not fully carried out by the country concerned, because the dollar is still trusted by many private companies and there are other effects if they eliminate the dollar in international trade. however, whatever efforts a country makes to dedollarize it can have a negative impact on the dollar.

[legiteum]

Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. Russia is also part of BRICS while Iran will join in the Jan 2024.

Now news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?

I suspect the keyword there is "trying". If I had my own country, I'd love for the rest of the world to trade only in my currency too. But reality is another story. The only thing that would dislodge the US dollar is a massive political upheaval in the US that called the currency into question. And that would be an event that would wipe out trillions in wealth overnight. Nobody would want that.

[Gladitorcomeback]

Saudi Arabia is also part of BRICS and it also a big source of oil, maybe not bigger than Iran but it do have big resources

Saudi Arabia is bigger source than Iran. According to 2023 calculation Saudi Arabi products was 9,060,000 per day with top 3 position in world oil production countries while Iran is on number 8 with 3,140,000 bbl/day.

 talking about Iran going against the US dollar is not something new, because back in time, NIOC has made many tries to avoid using US dollars but you know they were forced. Well, the same thing would have happened with Iran which happened with Iraq, but now they have taken the support of BRICS.

absolutely right. The National Iranian Oil Company (NIOC) has a history of exploring alternatives to the US dollar in its transactions which is also partly due to political issues.
Now, with Iran turning to BRICS for support, it shows a very goid move towards strategic partnerships. BRICS, comprising Brazil, Russia, India, China, and South Africa, offers an alternative economic alliance that allows Iran to reduce dependency on traditional Western channels.

Talking about Russia, even if they are a big source of oil and are good competitor of the USA, but still they might have to trade using US dollars while making trades with the US. Overall, I don't think US will be in any danger if these countries will starts to make deals in local currencies, that's because they ways to make deals in local currencies are full of difficulties and these difficulties will increase more by the ones who might be in danger due to this.

You make a very valid point. While Russia is a significant oil source with 9,480,000 bbl / day and a somehow competitor to the USA, the use of US dollars in trade remains a usual practice. Shifting to local currencies faces challenges and we know that the complexities involved could act as a deterrent. Countries are trying to established the systems ,If they success then it will have some negative impact on US dollar but now nothing big will happen with USD.

[Raceonsucced]

-snip-
Talking about Russia, even if they are a big source of oil and are good competitor of the USA, but still they might have to trade using US dollars while making trades with the US. Overall, I don't think US will be in any danger if these countries will starts to make deals in local currencies, that's because they ways to make deals in local currencies are full of difficulties and these difficulties will increase more by the ones who might be in danger due to this.

You bring quite an interesting perspective. It is true that even though Russia is the US's main competitor in energy resources, they still trade using US dollars in international trade, however I think cooperation is not always in line with political relations.

[Upgrade00]

Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. <snip>

Now news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?

This is not new, the proposal to replace the dollar as the global reserve currency has been around for a long time and if it works out it will have a huge impact on the dollar and the economy of the United States.
For the rest of the world, it will just be one or the other.

Is Iran and Russia still trading with the US dollars? How can these two nations known for their anti-western stance still be trading in the US dollars now? They should have stopped trading with the USD a long time ago because the US has made them suffer from economic hardship because of sanctions.

Global trade standards are not changed very easily. Dollar is the universal currency that oil and some other global commodities are pegged to and changing that will require some economic resets from the nation's that wish to switch to another option.

China is the closest to presenting an alternative to the USD and BRICS will be at the forefront of doing that, probably with Chinese Yuan.

[WillyAp]

They (Rusia, China, Iran) can hate the dollar as much as wish but they both need $ to pay rent for embassies which do gladly get $.
The world is connected and we are all part of it. Russia, Iran and China wish for a world which dance to their tunes?
What tunes will those be, I wonder?  

[SamReomo]

If I'm not wrong then both of those countries are in the group of country that have bad relations with the United States and they relations will continue to suffer due to difference in opinion and use of power. It's strange to see that Russia and Iran are still using US dollar to do their trading but surely the USD is the international currency and using it for trading makes sense.

However, now if they switch to BRICS or may accept each other's own fiat currencies for trading purpose then it's going to be a good thing for those countries but I don't think that it will impact the dollar in any way at all. the US dollar will continue to show its dominance but maybe in future BRICS might compete it in ASIAN zone.

[kentrolla]

They had been trying something like this for a while but I don't think they will have any success because both Iranian Rial and Russian Rubble as dead and will never be accepted by any other countries. Indeed Russia and Iran have really good relationship but they cannot do much by trading in their local currency instead of USD. May be they can just create a new ecosystem backed by something like gold or minerals and use that as trading choice.

Unless there are other major oil and gas exporters like Saudi Arabia, Kuwait and Qatar, USD will not see any impact even if Russia and Iran ditch USD all together.

[icalical]

I think that's one the main idea of why those country were forming BRIC in the first place, they want end the dependency toward USD. However, in my opinion at the end of the day they will need one currency as commonly accepted. There was a talk about a new BRIC currency, but that will be a very long road, and almost impossible, until then I think they will used each countries own local currency for trading, or they could use RMB which is more widely accepted currency compared to other BRIC Countries' currency.

[coupable]

Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. Russia is also part of BRICS while Iran will join in the Jan 2024.

Now news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?

This topic has been discussed for many times in many recent discussions, especially in this board of the forum. With just a simple search, you would have found many answers to your questions, or they could be considered explanations for what is happening.
Despite the difference in opinions on the issue, you can summarize the positions into three types: A type that believes that the power of the dollar cannot be affected by the emerging international alliances and that it is still here to stay. The second type dreams of an era without the dollar, and that this can be achieved soon. The third group is more logical in its analysis and leans towards the idea that monetary systems can coexist, meaning that other currencies can replace the dollar in many functions.

[philipma1957]

Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. Russia is also part of BRICS while Iran will join in the Jan 2024.

Now news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?

You have to understand the US is possibly playing rope a dope.

Biden is the old fool moron. turns off all the oil. so Russia and Iran pounce.

Sucker move by US as Biden loses next election and

 Donald "mother fucking or should I say daughter fucking" Trump comes in opens up the oil and crushes the Ruble and the brics.

We never can really understand the mind games these assholes play we kind of try to survive them as best we can.

[legiteum]

You have to understand the US is possibly playing rope a dope.

Biden is the old fool moron. turns off all the oil. so Russia and Iran pounce.

Sucker move by US as Biden loses next election and

Donald "mother fucking or should I say daughter fucking" Trump comes in opens up the oil and crushes the Ruble and the brics.

We never can really understand the mind games these assholes play we kind of try to survive them as best we can.

You give these politicians way, way, WAY too much credit. There's no chance either has any kind of "plan" like you are implying here, and no US president can "turn off all of the oil" or whatever. If you're actually interested in the price of oil over time there are a lot of factors....

[Darker45]

Of course, if two countries that previously used the US dollar decide to finally do away with it, it will have an impact on the US dollar. They would let go of every single USD in their coffer. They would not be buying any in the future.

But the bigger question is would they be able to fully detach themselves from USD? Will all their trading partners be amenable to avoid using the USD? If not, could they survive trading only with those that are willing to accept their local currency? Are international trading partners willing to deal with an unstable Iranian rial, for example, that has been losing value so fast in the past several years?

To my mind, the gravity of the impact of ditching the USD wouldn't be as heavy on the USD as their very own countries.

[Husires]

The US dollar is highly permeated in commercial transactions and it is not easy for it to be quickly exchanged, whether for any other currency or for gold, but many countries will try to reduce their holdings of the dollar and buy currencies of other countries, which will make the dollar’s contribution to global reserves less than 70%. Then the Fed may give The American view is important for the opinions of other countries and not just for the monetary policy of the United States only.

[Kelward]

Of course, if two countries that previously used the US dollar decide to finally do away with it, it will have an impact on the US dollar. They would let go of every single USD in their coffer. They would not be buying any in the future.

But the bigger question is would they be able to fully detach themselves from USD? Will all their trading partners be amenable to avoid using the USD? If not, could they survive trading only with those that are willing to accept their local currency? Are international trading partners willing to deal with an unstable Iranian rial, for example, that has been losing value so fast in the past several years?

To my mind, the gravity of the impact of ditching the USD wouldn't be as heavy on the USD as their very own countries.

Both countries Russia and Iran, can only accomplish ditching the USD if they decide to trade between themselves alone, but we all know that is not a good economic plan. They still need trade relations with other countries that might not be willing to do international trade with another currency other than the USD. In that case if other countries are not willing to accept another currency for international trade, wouldn't that be a flop to them? They need to first rally other OPEC countries and industrial countries like china, to be able to get a head start, or they remain in trading between themselves which will not be favorable to either of them in the long run. US has a lot of influence in many countries, therefore it'll not be easy to replace USD as the dominant force in world currency domination.