De-dollarization: Hype or real shift in the global financial system?

[el kaka22]

There have been couple of other topics dealt with dedollarization where people gave mixed responses and I am sure that is the real state of mind for most countries against dedollarization as of now. I read if America is not printing as much as what they are doing right now, most countries would have bankrupted by this time due to starvation led by hyper inflation. I am not specialized in economics or TLDR hence I understand only part of it like I still could not get how America's momentary policy saves world economy.

Overall, before opting for dedollarization, I started to believe we need to study and understand what is right now happening which keeps world economy stays balanced. Just because of America's policies like stand on Israel-Palestine or Russia-Ukraine or stand on Cuba, we should not go for dedollarization. Economy of world still depends on America for some reason hence slow and steady progress of dedollarization may help if dedollarization is a only solution for a nation or group of nations to grow further.

[shield132]

Hey guys here is a topic from the Big picture I found very interesting to ponder on;

De-dollarization I think is attracting lots of attention, though it still feels ahead of the reality. The USD still maintains leading position in the world trade, finance, and central bank reserves for a purpose: trust, liquidity, and the depth of U.S. financial markets. Nations like China and Russia are pushing options—using local currencies in business deals, raising payment systems without SWIFT, and expanding gold reserves—but these efforts encounter difficult obstacles.
At least there's yet no obvious replacement. Even the euro faces internal political challenges, the yuan is not completely convertible and cryptocurrencies are very volatile and lightly controlled for major state use. In oil business too, where plans to use other currencies get headlines, the USD still dominates because it's stable and internationally approved.
The use of other currencies is gradually growing in bilateral business agreements, and sanctions have made some nations weak of relying too heavily on the USD system. Though unless the U.S. mishandles her fiscal position or weaponizes the dollar too aggressively, it's central functions will likely stand.
To conclude, de-dollarization isn't a fairytale— but also isn't a revolution either. It's more of a slow shift at the lines, not a sudden upheaval. The dollar dominance can gradually erode, but for now, there's no serious opponent ready to take its position

What is your view?

The most interesting thing to me is, what do people think about the USD? I mean, what an average person thinks about it in different countries? In my country, during the existence of soviet union, US dollar was forbidden to use but it was available on black market and there was a big demand on it. Today, in my country, people keep their savings in US dollar instead of saving money in local currency or in Bitcoin or in assets. People here think that US dollar is powerful and they believe that it will be dominant. I want to know, what people think about US dollar in other countries like Turkey, Armenia, Brazil, Malaysia, Mexico, Argentina, Uruguay and etc?

[Fiatless]

As long as many countries continue to depend on the US economically and militarily the dollar will keep dominating the global financial system. Any attempt by these nations to de-dollarise will be met with devastating sanctions and military threats. BRICS have been a champion of ditching the dollar, but because some nations in the union depend on the US in some areas, they have not been able to pursue this goal vigorously. 

But the process of de-dollarisation has already started. Many nations are now engaging in international trade with local currencies. If this continues, the dollars will gradually lose their grip on the global financial system.

[coupable]

There have been couple of other topics dealt with dedollarization where people gave mixed responses and I am sure that is the real state of mind for most countries against dedollarization as of now. I read if America is not printing as much as what they are doing right now, most countries would have bankrupted by this time due to starvation led by hyper inflation. I am not specialized in economics or TLDR hence I understand only part of it like I still could not get how America's momentary policy saves world economy.

The global economy has been mired in the dollar since the Bretton Woods Agreement, which made the dollar the official currency for international trade. Consequently, the prices of major commodities such as gold, oil, and gas are now determined in dollars. The Nixon shock of the 1960s proved to be a real predicament the world had placed itself in, and no one could object for fear of the US, for which the dollar had become its most important factor of power. Since then, the use of the dollar has increased, and the US has deepened the crisis by printing more dollars without sufficient gold reserves. To this day, the world remains on a one-way street, unable to stop, change course, or even reverse course.

[Mate2237]

To conclude, de-dollarization isn't a fairytale— but also isn't a revolution either. It's more of a slow shift at the lines, not a sudden upheaval. The dollar dominance can gradually erode, but for now, there's no serious opponent ready to take its position

What is your view?

You have hit the hammer on the head of the nail because the truth is is that the world is changing and it's changing very fast and that change is affecting bilateral relations and with the tensions going on in the world there are new alignment going on in the world organizations like Brics are  direct threat to the use of the dollar in the international market so  de dollarisation is something is is gradually sweeping across the world


To me I even support those countries that are spear heading this moves because truth be told the United States of America has over time become so autocratic and has control other countries for too long what ever they consider good is good and what ever they consider evil is evil so if other countries don't stand up and challenges them the world will be monopolized into something else alot of countries are shifting grounds from the United States of America the latest is coming from the African continent most African countries are abandoning the the use of the dollar more African countries are joining brics

[katanic97]

For example, smaller countries can’t afford to make mistakes, so they stick with the dollar because, realistically, it’s still the safest option. They're waiting on the sidelines to see who will set the new rules of the game. So yes, the process is slow, but it's becoming increasingly clear that things are shifting in a direction where the dollar is no longer untouchable.

Certainly the case even among the smaller ASEAN countries -- dollar is still the mainstay, but we're seeing more and more options from banks to save/move your money from USD accounts to either baskets of semi-BRIC or Euro at better rates, or even the "stabler" ASEAN currencies like Singapore dollar.

The renminbi option is never seriously considered -- but the voices are getting louder. BoA just this week notes that ASEAN investments are more active in hedging foreign investments now... and there are more dollar outflows.

Basically, yes, the dollar is still the main currency, but it somehow feels like the groundwork is being tested for alternatives. There are mentions of some bilateral agreements with China in countries like Malaysia and Indonesia. In my opinion, even though the renminbi isn’t an option right now, it’s not hard to see that China is preparing for its "slightly" bigger role. Now, the question is whether central banks are truly ready to move away from the dollar or if it’s all just a show for the public?

[SATWAT]

For example, smaller countries can’t afford to make mistakes, so they stick with the dollar because, realistically, it’s still the safest option. They're waiting on the sidelines to see who will set the new rules of the game. So yes, the process is slow, but it's becoming increasingly clear that things are shifting in a direction where the dollar is no longer untouchable.

Certainly the case even among the smaller ASEAN countries -- dollar is still the mainstay, but we're seeing more and more options from banks to save/move your money from USD accounts to either baskets of semi-BRIC or Euro at better rates, or even the "stabler" ASEAN currencies like Singapore dollar.

The renminbi option is never seriously considered -- but the voices are getting louder. BoA just this week notes that ASEAN investments are more active in hedging foreign investments now... and there are more dollar outflows.

Basically, yes, the dollar is still the main currency, but it somehow feels like the groundwork is being tested for alternatives. There are mentions of some bilateral agreements with China in countries like Malaysia and Indonesia. In my opinion, even though the renminbi isn’t an option right now, it’s not hard to see that China is preparing for its "slightly" bigger role. Now, the question is whether central banks are truly ready to move away from the dollar or if it’s all just a show for the public?

Currently, USD is main currency with its could be for some more decades as well even things are taking changes but still it's not easy to replace even few countries are trying their best, but this will take good time for having huge changes.
China is doing his own work for this but having not enough success because China is the best market for few countries but mostly are having not enough profitable which is big problem USA is still no 1 for many countries those have their interest and exporting their goods for years.
BRICS is good option but if they want to do something big they needed to be had Bitcoin as their currency this could be huge change for them and their allies which will surely have something good because other than bitcoin any currency is not going to be good idea for them in long run.

[Jwest]

The U.S. dollar is still used in 90% of global forex trades.
Most global debt, commodities, and trade contracts are still in USD.
Even countries calling for de-dollarization still depend on dollar-based systems (like SWIFT alternatives haven’t gone mainstream).

De-dollarization isn’t a cliff — it’s erosion.
It’s slow, uneven, but real.
Not a headline shock, but a long-term strategic shift.

[buwaytress]

Certainly the case even among the smaller ASEAN countries -- dollar is still the mainstay, but we're seeing more and more options from banks to save/move your money from USD accounts to either baskets of semi-BRIC or Euro at better rates, or even the "stabler" ASEAN currencies like Singapore dollar.

The renminbi option is never seriously considered -- but the voices are getting louder. BoA just this week notes that ASEAN investments are more active in hedging foreign investments now... and there are more dollar outflows.

Basically, yes, the dollar is still the main currency, but it somehow feels like the groundwork is being tested for alternatives. There are mentions of some bilateral agreements with China in countries like Malaysia and Indonesia. In my opinion, even though the renminbi isn’t an option right now, it’s not hard to see that China is preparing for its "slightly" bigger role. Now, the question is whether central banks are truly ready to move away from the dollar or if it’s all just a show for the public?

They've been preparing for the past two decades in SEA, a mix of economic diplomacy and some heavy-handed tactics in terms of loans and development projects. I think their long view is for the next generation of leadership to opt for renminbi repayments for lower interest, with the idea that by 2080 many of Malaysia/Indonesia/Philippines will want out of debt for the roads and bridges and what not China is paying up front for.

[Oluwa-btc]

Personally an Most importantly I consider it as a general implication to the global financial markets.Its been known that the Dollar has proven to several stabilities and global trust.
Honestly,De dollarization is neither a hype or a global financial shift.This concept is mainly enforced by geopolitical pressures in global finance.The dollar isn't collapsing,but in so many ways,it's value has been questioned, displeased and increasingly challenged.

[bubilas]

The dollar itself is an economic phenomenon. And when it was tied to gold, it was understandable, but then, when Nixon untied it, after that the dollar became not just a piece of paper but rather an "investment stock in the USA", if we can say so, but nevertheless it is still somehow strange that it was simply untied from gold.
However, I will never forget how Trump reacted so sharply to the fact that BRICS was considering the prospect of creating its own analogue of the dollar, he was really scared of it.

[pooya87]

However, I will never forget how Trump reacted so sharply to the fact that BRICS was considering the prospect of creating its own analogue of the dollar, he was really scared of it.

And some people still insist that dedollarisation is not happening and BRICS is not doing anything and is dead. How can the US regime be so scared of something that is not happening and doesn't exit?

[WillyAp]

And some people still insist that dedollarisation is not happening and BRICS is not doing anything and is dead. How can the US regime be so scared of something that is not happening and doesn't exit?

it only exists on a state level.
mostly private businesses and all people who suffer under their own failing currency save their belongings in US$ or now in USDT.

[tbct_mt2]

And some people still insist that dedollarisation is not happening and BRICS is not doing anything and is dead. How can the US regime be so scared of something that is not happening and doesn't exit?

Such attempt to insist that de-dollarisation does not exist or is already dead is completely wrong and truly obsessive only.

De-dollarisation truly exists and BRIC alliance actually exists too but they are too weak at the moment to succeed. Admit their existences is very important because they can change, upgrade themselves and become stronger as well as more competitive in future so that making de-dollarisation progress coming more closely to success some time in future.

All governments are the same in printing money, and all fiat currencies have inflationary problems so I really don't know how BRIC nations can beat the USA and US. dollar in near future. I know that the de-dollarisation process contains more components than just central banks and fiat currencies as well as their money printing activities.

[Synchronice]

Hey guys here is a topic from the Big picture I found very interesting to ponder on;

De-dollarization I think is attracting lots of attention, though it still feels ahead of the reality. The USD still maintains leading position in the world trade, finance, and central bank reserves for a purpose: trust, liquidity, and the depth of U.S. financial markets. Nations like China and Russia are pushing options—using local currencies in business deals, raising payment systems without SWIFT, and expanding gold reserves—but these efforts encounter difficult obstacles.
At least there's yet no obvious replacement. Even the euro faces internal political challenges, the yuan is not completely convertible and cryptocurrencies are very volatile and lightly controlled for major state use. In oil business too, where plans to use other currencies get headlines, the USD still dominates because it's stable and internationally approved.
The use of other currencies is gradually growing in bilateral business agreements, and sanctions have made some nations weak of relying too heavily on the USD system. Though unless the U.S. mishandles her fiscal position or weaponizes the dollar too aggressively, it's central functions will likely stand.
To conclude, de-dollarization isn't a fairytale— but also isn't a revolution either. It's more of a slow shift at the lines, not a sudden upheaval. The dollar dominance can gradually erode, but for now, there's no serious opponent ready to take its position

What is your view?

A 16 years old might not know what is US dollar and how the economics work but an adult politicians should know that. The tendency of moving away from US dollar is real but another question is, how possible is that? US has their politicians in different countries, governments in some countries are backed by the US and they follow US interests. Do not think that politician wins in an independent country and imperialistic countries have nothing to do with them, they all are backed by them. If the US fails to put their puppets into the governance of other countries, then we will see significant improvements in terms of de-dollarization.

Keep in mind that de-dollarization won't happen overnight, it will be a very slow process and believe me, it has to be that way or a sharp shift will collapse the world economics, which will be very devastating.

[asriloni]

It looks like a hype at the moment because if they want to replace the dollar, they need to come up with something better to replace it.

Yes USD sucks, it has been losing its purchasing power ever since its debut, yes USA is weaponizing it.

Guess what?

The world still use USD. If there was another way, the world would switched to it already.

Everybody hates the dollar and yet they keep stacking it.

Many people in my country hated USD so much, yet they always use USD stable token to trade in crypto, even stacking it as their reserve. This pretty much the same many hated US, but they still use youtube. Two face people are just common thing these days.

They hate it, but need it. 

[pooya87]

And some people still insist that dedollarisation is not happening and BRICS is not doing anything and is dead. How can the US regime be so scared of something that is not happening and doesn't exit?

it only exists on a state level.
mostly private businesses and all people who suffer under their own failing currency save their belongings in US$ or now in USDT.

Actually anybody with half a brain would store their funds in gold and precious metals not fiat of any kind including the dollar.

As for Tether, I have to say it is beyond stupid to store a centralized altcoin that can freeze your funds or can go down if some day the US government decides to shut them down thinking they pose a threat to their dollar hegemony! And poof USDT will be gone.

[Churchillvv]

However, I will never forget how Trump reacted so sharply to the fact that BRICS was considering the prospect of creating its own analogue of the dollar, he was really scared of it.

And some people still insist that dedollarisation is not happening and BRICS is not doing anything and is dead. How can the US regime be so scared of something that is not happening and doesn't exit?

Are you surprised? people who got scared of rumour of an existing weapon of mass destruction and destroyed the country, they are aways scared.

[snip]

it only exists on a state level.
mostly private businesses and all people who suffer under their own failing currency save their belongings in US$ or now in USDT.

Actually anybody with half a brain would store their funds in gold and precious metals not fiat of any kind including the dollar.

As for Tether, I have to say it is beyond stupid to store a centralized altcoin that can freeze your funds or can go down if some day the US government decides to shut them down thinking they pose a threat to their dollar hegemony! And poof USDT will be gone.

Probably the most stupid thing anyone can do, instead of being so foolish go into gambling with full altcoin that store shit will a bigger shit.

What happened to gold? bonds or even stocks even though it's quite volatile, I'm not sure anyone is really doing that except they have no clue of what money or crypto is about.

[pooya87]

What happened to gold? bonds or even stocks even though it's quite volatile, I'm not sure anyone is really doing that except they have no clue of what money or crypto is about.

The important thing about investment has always been timing and risk assessment.

If it were 5 years ago, then people would have still "invested" in dollar and it was not such a bad idea for those going through high inflation because the unipolar world was still in place despite the fact that it was falling back then too but it hadn't fallen yet. Today there is a different story. The world is no longer unipolar and there are new powers emerging and the New World Order is being established.

This makes the dollar (that has the largest printed amount) and US (that has by far the largest national debt) both extremely risky investments. Even if your own fiat is dumping harder than the dollar, it still doesn't reduce the risk of dollar itself.
And we are not stuck with one option, we have lots of options like gold and bitcoin to invest into instead of dollar!

[EarnOnVictor]

That is a question that was answered roughly 3 years ago. Back then people still questioned whether dedollarisation is happening or not, but today we know that it has already happened. For example in ASEAN the member states have been increasingly using their own fiat currencies in trades they have amongst themselves. So you can say they've already abandoned the dollar for such trades completely.

I get your point, many activities of countries and organisations (private/nation-state) can be directly or indirectly linked to de-dollarisation, but it will take far more than indirect ones for true de-dollarisation to happen. If you look around you, it's still the USD in the global financial and inter-bank market, as if others barely exist. Nearly everything that is being priced and sold in the global market is still significantly in the USD without noticing the effect of the de-dollarisation. For me, it's just a powerless rebellious word.

Fine, there are efforts, but I don't think that ASEAN is a de-dollarisation effort, but a means to increase trading relationships in the region, rather than affecting the USD in any way, they still deal with the USD in their respective ways. I'm sure that all of those countries are travelling all around the world and fulfilling their cross-border trades and deals (outside ASEAN) in USD. I view it just like the case of states within a country increasing trades among themselves, nothing more. The good example we need is something like the Euro arrangement. That's a very good rival that will not only help in regional trade but also take part in the global currency flow.

If more continents or the world's organisations could have such a breakthrough, then we can be talking about de-dollarisation. BRICS is a good threat here (if it is successful). It only needs more members and proper coordination to snatch more dollar dominance through a common currency and trade cooperation. Will this be easily possible? Heck no! Issues will surely arise over time, because they are of diverse regions with different purpose of joining.