Ditching US dollar

[pooya87]

Ditching the US dollar or as it is more commonly known: dedollarisation, is a global matter and should not be limited to a country or two doing a trade between themselves. It is also not a new thing, I'd say the start of it was in 1968 when the world started realizing the big American scam known as Bretton Woods (dollar was supposed to be backed by gold with a fixed exchange rate). The last nail in the coffin was in 1971 when Nixon suspended the conversion of dollar to gold. The 70's were very similar to these days and most of the world (specifically Europe) was facing an energy and an economy crisis so they started dumping the dollar and the price of it crashed.

The only thing that kept the scam going was replacing Bretton Woods scam with Petrodollar scam, which is basically US forcing others to trade energy using the dollar!!! It postponed dedollarisation for a long time and in my opinion the next major wake up call was 2008 when US banksters scam that crashed US economy and significantly harmed the global economy forced the world to think about dedollarisation again (fun fact: bitcoin was created in the same period).

But United States used to do all that by being the only power pole in the world and exerting its power through organizations they controlled such as United Nations and International Monetary Funds and many others. Which is why dedollarisation to this day has not been greatly successful.

That means dedollarisation needed the World Order to change. Which it did over the past couple of years. Today US can no longer exert the same power to force countries to use its limitless fiat which they print trillions per 2-3 months at this point!!!
This is why the world is once again moving towards dedollarisation but with better success and determination. And it is not just one or two countries doing that, every single country is doing it but at a different scale. For example a country like Iran that is heavily sanctioned by US is obviously more willing to ditch the dollar than Saudi Arabia that is like the 51st state of America but they both are doing it considering how the Saudi regime is conducting trades with China using Yuan that replaced dollar.
You can see this case by case yourself, for example over the past year many EU members have been trading with Russia using Ruble to evade US sanctions and still buy Russian energy!

[DrBeer]

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?

A bit of skewed information.
Both Iran and Russia are pariah countries.
And, of course, they are under sanctions. This means that they have limited opportunities to obtain stable currency for international trade. Moreover, in some transactions, these transactions can be blocked if an international payment system is used.

So they start to think of ways to trade among themselves. And it's not a rejection of the dollar The rejection of the Iranian and Russian dollars sounds like a traveler who found himself in the middle of a potsynia without water and "proudly" shouted "no no no, I don't need water, I refuse it" )

Yes, they will look for alternative ways. Russia tried to promote its fake ruble at first, saying "the whole world will buy oil and gas only with rubles", well you probably laughed then too, just like the whole world Then Russia started selling oil for ayuan and rupees. Everyone laughed here too, because "in public" Russia showed "unprecedented revenues from oil", but in fact - half of rupees can not get until now, and for the rest - can not buy anything. The yuan is a little better, but except for consumer goods, Russia can't get anything in exchange for oil either.
And from Iran Russia needs drones, missiles and shells to continue the terrorist war against Ukraine. Therefore, they will look for some "schemes".... But all this is called "search for a monetary surrogate to try to replace the dollar, which is now not available to rogue countries like Russia and Iran".

[avikz]

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?

It will definitely have certain impact on US dollar. The impact will be great on those countries who will be importing oil using their local currency. Honestly I believe, there should not be one single currency to rule the international trade. That gives too much power to a specific country and give them and upper hand to start war at any part of the world. So if two major oil exporters start taking local currency against their oil, it will reduce the dependency on the US dollar. A great first step towards global peace, maybe!

More and more oil exporting countries need to join the band wagon.

[jeha2015]

With the new members, the new BRICS composition now controls several percent of world oil production. Moreover, with the joining of Saudi Arabia, the United Arab Emirates, Egypt, Argentina and Iran into BRICS, these countries control most of the world's oil production. This clearly has a negative impact on the US dollar.

If all countries do not want to use US dollars and do not buy American bonds and cadev, all countries change US currency to Brics, then the US dollar will definitely collapse because it will no longer be needed for international trade. Moreover, currently the BRICS countries combined represent 40% of the world's population.

[Uruhara]

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 don't believe it will have a bad impact on the Dollar globally. Because the position of the US Dollar remains strong until now. If speaking is influenced, maybe it will still have an impact. But maybe not a big impact. But this year I have heard a lot of news regarding a country starting to use their local currency in international trade. especially countries that have trade cooperation with China and Russia. And it seems that Russia naturally does not use dollars in international trade if we remember the relationship between their country and the US. Many of the countries that are members of the BRICS seem to have done this. In the long term, there may be a time when the US Dollar will begin to weaken in global dominance. But I don't think that's any time soon. because currently the Dollar is still the strongest.

[DrBeer]

With the new members, the new BRICS composition now controls several percent of world oil production. Moreover, with the joining of Saudi Arabia, the United Arab Emirates, Egypt, Argentina and Iran into BRICS, these countries control most of the world's oil production. This clearly has a negative impact on the US dollar.

If all countries do not want to use US dollars and do not buy American bonds and cadev, all countries change US currency to Brics, then the US dollar will definitely collapse because it will no longer be needed for international trade. Moreover, currently the BRICS countries combined represent 40% of the world's population.

What do you mean, "controlling"? Can manipulate? No ? Then they have no influence on the market. Again - even if OPEC/OPEC+ (oil selling countries) are not able to really change the situation on the market, what can we say about a group of countries with a small share of production?
Moreover, China and India are much better off with cheap oil than with expensive oil.

Regarding "If all countries give up the dollar" - 2 simple questions :
1. Why ?
2. What to replace it with ?

Try to answer by giving arguments ?


And lastly, about "40%" of the world This is the 21st century, and it is not very effective to measure the number of population. You can measure by comparing the efficiency of the economy... But even here the BRICS are not doing very well... Even the Chinese economy has now entered the area of crisis, from which they not only can not get out, but the situation is getting worse.
By the way, it seems that China did not manage to fool "BRICS partners", and the theme of "de-dollarization and yuan-ization" did not pass - there were no fools in the BRICS who would agree to "import" the problems of the Chinese economy by switching from the dollar to the yuan.

[puloweh555]

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?

Of course, America and Europe will do everything in their power and efforts to protect their currencies, the dollar and euro, in various ways so that they continue to be used as a means of international trade transactions by all countries.

Therefore, any country that tries to weaken their currency, such as China and Russia, must immediately be weakened and destroyed in ways like what we have seen now through trade wars, proxy wars, energy wars, information wars, biological wars and many other wars. which they play with the main aim of protecting their currency interests so that they can continue to rule this world by fooling other human beings into using their currency which is not backed up by gold or worthless paper without any collateral attached to the money. buying petroleum and other things that have useful value are only paid for with play money that is worthless and printed at will, this is truly an abuse that cannot continue. So I think the presence of Brisc is really aimed at weakening the US Dollar. In my opinion, it is good, so that the West's economic and political hegemony over the world is balanced.

[WillyAp]

Of course, America and Europe will do everything in their power and efforts to protect their currencies, the dollar and euro, in various ways so that they continue to be used as a means of international trade transactions by all countries.

There is no need to protect the currency, the entire world wishes to have them.
Even the crypto crowd!

[fikayo]

The plan will surely have great impacton the US dollar one of which is hyperinflation.

[Casdinyard]

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?

Of course it's going to badly impact the US dollar, just how severe should be the question you should be asking. These countries that have become part of the BRICS alliance do not have the best relationships with the US ever since, and yet despite that they still depend upon the US economy a great deal. So in that regard I still think there will be a substantial impact upon the US dollar should they continue with the ditching of USD. One can argue that they could bar the US from receiving export and resources like oil, which will severely affect the US economically, but I don't think it's oil that will be the biggest denominator in this battle of attrition really. Especially when the world's turning towards electric vehicles and everything that's automated.

I think what could really affect the US economy here is the prospect of a formidable foe that could thwart the western superpower economically and in the military sector. Much of the countries in the BRICS have their fair share of nuclear warheads and weapons that they can detonate at their disposal and since the US is basically fighting in a 1 vs. everyone situation here, the mutually assured destruction caveat don't apply.

[WillyAp]

Of course it's going to badly impact the US dollar, just how severe should be the question you should be asking.

It won't as the poorest citicens won't use that BRICS,
40% but 80% of the poorest citicens live in the BRICS countries,

[kryptqnick]

Iran and Russia are under sanctions, I don't think they can actually use USD. Maybe illegally, unofficially. But it's a big struggle for such countries. Also, they aren't big economies. Russia is #11 by GDP, but that's less than 10% of the US economy, for example. Iran is much smaller, at #42, with the economy smaller than that of Hong Kong and around the size of what Romania has. So their impact is certainly overestimated by the op. Whatever they do will have zero impact on the USD stability because they are nowhere near being strong enough to do anything about it.

[DrBeer]

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?

Of course it's going to badly impact the US dollar, just how severe should be the question you should be asking. These countries that have become part of the BRICS alliance do not have the best relationships with the US ever since, and yet despite that they still depend upon the US economy a great deal. So in that regard I still think there will be a substantial impact upon the US dollar should they continue with the ditching of USD. One can argue that they could bar the US from receiving export and resources like oil, which will severely affect the US economically, but I don't think it's oil that will be the biggest denominator in this battle of attrition really. Especially when the world's turning towards electric vehicles and everything that's automated.

I think what could really affect the US economy here is the prospect of a formidable foe that could thwart the western superpower economically and in the military sector. Much of the countries in the BRICS have their fair share of nuclear warheads and weapons that they can detonate at their disposal and since the US is basically fighting in a 1 vs. everyone situation here, the mutually assured destruction caveat don't apply.

The following countries in BRICS possess nuclear weapons:
Russia is an international terrorist country. Yes, it can be the author of a nuclear war. But. Russia shits in front of the whole world with its "second army of the world", and "unparalleled weaponry".  Russia turned out to be a fake country, as well as we can assume a strong degradation of nuclear weapons.

China is a country globally dependent on the West - investment, technology, consumer market. Do you think it is profitable for China to start a war against those who essentially created and support China's economy? !

India is an absolutely adequate country, with a western vector of development, not tainted by ties with rogue countries, which wants to develop and integrate more deeply into the WESTERN economy.

And the most important thing is that all these countries are very eager to get DOLLAR !

[tjtonmoy]

I don't know how successful they will be on this matter and will it actually have an impact on the US dollar. Using local currencies for trades can create many problems and conflicts between those countries. They might not be able to keep the relationship that they are trying to create. If they came up with a new currency backed up by something valuable, only then they can stand on the similar ground.

India and China have already tried it and failed to do that due to the reason that local currencies are bad for trades. You can create money out of thin air and for this reason it is hard to use them for international trades.
If they are going to do the trades internally, maybe they can be successful at that but not possible while doing it internationally.

[WillyAp]

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.

Well here we go,the speech for the followers and the reality.
Welcome to the reality. 

[SATWAT]

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.

Well here we go,the speech for the followers and the reality.
Welcome to the reality. 

Main problem is no one want to go into reality, mostly are going with headlines only if they are thinking mean they are still having time with is showing how things are going with its never been easy to do this all.

But still we know everything is not last nature keep bring changes so we can hope for more in coming years and Iran, Russia and China are trying to do few things which are surely never been easy but important, and we have to wait for the better implemented which are more important how can they do this all it's also important today we have new Argentina is not going to join BRICS with few more announcements can appear in next few days as these changes are also can happen.

[Hispo]

India and China have already tried it and failed to do that due to the reason that local currencies are bad for trades. You can create money out of thin air and for this reason it is hard to use them for international trades.
If they are going to do the trades internally, maybe they can be successful at that but not possible while doing it internationally.

The United States dollar can also be created out of thin air, by the way, all FIAT currencies can be created out of thin air just like that if their central banks believe it is convenient to handle their economy and safe rough times. Actually, if you see the situation which was created because the COVID pandemic, you could see at the example which was set by the government of the United States printing money out of nowhere so it could be provided in form of stimulus, so people could afford food and shelter during some months. I recall it those were up to 2000$ which were given per person.
In the case of India and China, if the problem is liquidity then it would take the Yuan to further expand its influence in other countries in Africa and LatinAmerica, so whoever gets paid in Yuans could easily get the products and services they need from other countries besides China, without having to buy dollars again.

I am still pretty skeptical on the USD being replaced in the short of mid term by countries within the BRICS or outside the BRICS, it has been decades of dominance by the United States and its allies, it wont easy to break free from it, not as easy has many people on this forum make it sound.

[bbigtart]

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?

In my view, this will weaken the dollar and this is the aim of the BRICS itself. A very good strategy, weakening the US is not through war, simply by suppressing the dominance of the US dollar, then US dominance will also decrease because its economy will weaken. It is possible that the BRICS countries consider dollar domination to be the same as colonialism, especially since recently America has seemed arrogant and treated unfairly towards countries other than Nato.

I consider this a mutual progress, it should have been from the beginning, so that there would be no pressure to suppress interests because they control the world currency. But it would be even better if you used bitcoin or gold for international transactions.

[pooya87]

Of course it's going to badly impact the US dollar, just how severe should be the question you should be asking.

It won't as the poorest citicens won't use that BRICS,
40% but 80% of the poorest citicens live in the BRICS countries,

That's a weird percentage you came up with lol
In any case BRICS and its currency has nothing to do with "citizens" and their day to day medium of exchange. None of them are using dollar today and they won't start using BRICS currency in the future either.

BRICS currency is something meant for international trades on very large scales (trillions of dollars) between countries that is currently taking place using dollar. That is why its creation will have a negative impact on US dollar as it will lose its demand and with dollar's massive circulating supply and US unimaginable national debt the dollar value could crumble.

[WillyAp]

BRICS currency is something meant for international trades on very large scales (trillions of dollars) between countries that is currently taking place using dollar. That is why its creation will have a negative impact on US dollar as it will lose its demand and with dollar's massive circulating supply and US unimaginable national debt the dollar value could crumble.

My guess is that there won't happen much. The US stands for stability, or at least for more stability than the BRICS States.

BRICS States are a club of paria States. Their wheeling and dealing is not that big. Take away China and BRICS is nowhere near their numbers.
Why do you think it is trillions of $ in trades?

South Africa is having not even 1% of the trade: https://oec.world/en/profile/bilateral-country/usa/partner/zaf