Topic: Ditching US dollar (Read 520 times)

In today's world, it is indeed difficult for economic problems to carry out trade without the US dollar, but the most that can be reduced is of course the presence of BRICS will have a big impact on the US economic cycle because world countries will be more able to be independent. The formation of BRICS, with many countries abandoning the US dollar, has a lot of influence. of their country's dependence so that the dollar still dominates the world market.

And can you give me a list of countries that really want to abandon the dollar ?
Please provide a list of 3 columns:
- Country name
- GDP of the country
- Percentage of world GDP ?

It will be very interesting to discuss this list, because I can guess who you would like to put there, but.... There are nuances there that are easy to check and make sure they don't want to abandon the dollar

Very much looking forward to the list

Of course the presence of BRICS will have a big impact on the US economy, the dollar will weaken because many countries want to abandon the dollar. However, for me personally as an Asian, I really agree with the birth of Brics because countries in the world can be more independent in determining the economy in their own country and are no longer afraid of America and Europe. because it is under a new umbrella, namely BRICS.

I also believe the world has changed over time. The US will not dominate the world forever. China is getting bigger. Many figures say that China will become a world superpower in the future.

Ditching the US$

https://www.investopedia.com/articles/forex/040915/countries-use-us-dollar.asp

65 countries use the US Dollar, and a dozen wants to rely less on it.
Calling that ditching is highly delusional.

The misconception is strong enough. And easily provable in terms of being delusions
1. Iran is a major supplier of oil. But Iran behaves "decently" in the market and does not try to engage in economic terrorism, as for example Russia tried to do. Because it understands perfectly well that Iran's economy depends VERY much on its sales, so it tries not to "get into trouble"

2. russia is indeed one of the largest owners of oil and gas reserves. BUT. After the second stage of the terrorist war unleashed against Ukraine, Russia has lost almost all of its European gas market (more than 90% of what it had before 2022), and is forced to sell oil at huge discounts to China and India. And for illiquid currency. The truth "in public" describes how much they earn. Even though even official Russian ministers are squealing about the fact that, for example, the revenues of the oil and gas sector have fallen from 30 to 60%, and the remainder of production should be reoriented to the domestic market, since there is little room to sell them. you can even read the official reports of the Central Bank of russia, there are many interesting things about the "stability of the economy". 

The stability of the Iranian economy is best told by their local currency, which became "the most useless currency in the world" by the end of 2023 ...

The only thing that Iran and Russia have in common is terrorism, which is what they both got sanctions for, and also that both countries need ... DOLLAR :

Iran and Russia are really significant players in the global oil market in my opinion.They both have oil and natural gas mines and extensive oil reserves and are major exporters of oil and natural gas. Even after America's economic sanctions, they have proved themselves economically strong to the whole world. What they did not only say through words but also proved through acts
Iran faces economic challenges, including sanctions that have affected its oil exports and overall economic performance. On the other hand, Russia has a diversified economy with oil and gas as important components, and is a member of the BRICS group (Brazil, Russia, India, China, and South Africa) which represents the main emerging national economies.
The dynamic nature of geopolitics and the global economy and the current economic situation in both Iran and Russia, as well as their evolving relationship and Iran's potential participation in BRICS, has given the US a tough economic warning that is a real concern for the US dollar.

I think the introduction of the BRICS currency instead of the dollar in the world market will not be an easy journey for the BRICS countries. Efforts by the BRICS countries to use the BRICS currency instead of the dollar in global markets have been ongoing for a long time. As new countries join the BRICS alliance, the debate between BRICS countries is also increasing. So I think, BRICS will not be able to achieve its goals in this situation. If BRICS really wants to achieve its goals, BRICS countries should rethink. Considering if they can correct themselves then maybe the BRICS currency can influence the dollar. However, almost all countries of the world depend on the US dollar and the dollar is still dominating the world market. Breaking the dollar's hegemony in world markets is a "matter" of major challenges for the BRICS.

I absolutely agree with you! But I’ll add on my own behalf - when people unite for creation and a common goal, they can find compromises if they have different cultures, histories, religions, skin colors, traditions... If the goal is development, progress, creation - you can “put aside” disagreements . In general, BRICS was originally created as an alliance outside of other alliances, and it consists of countries that are not members of large economic associations such as the EU, or some kind of alliance of the USA/Canada/Britain/Australia. And in general, the BRICS participants could continue to develop their economies and mutually beneficial cooperation... But some decided to start manipulation... In my opinion, in this format, BRICS will not be able to achieve its goals. The solution is to either throw out the “toxic” participants or create a new union

It has both good and bad sides.  It is useful for Russia and Iran but they need to introduce this currency in the world market. Otherwise it will be difficult for them to do business. Their currency should be recognized like dollar otherwise how many natives or theirs will use this currency.  It is difficult but if you try it will definitely become easier to get familiar with.  If this can be implemented, their costs will be reduced and their own recognition will be increased.  However, it will be very difficult to make it popular around the world because most of the countries believe in the dollar.

It always has a big impact against the US economy and that's why they are doing all things to revert back the countries that are ditching their dollar.

I've read it from someone that in China, it's a total obvious. Most citizens have only a few choice to pay their things.

Cash, alipay, wechatpay and the other Chinese payment processing apps if I've missed one.

Not idea what that reform could be, by the way. Besides the different geopolitical objectives of the members of the BRICS, one must also keep in mind the traditional and cultural differences between those states, again, they are too heterogeneous. It is not like the United States or the European Union, they have had decades of association and opportunities to find common objectives. Actually, there will be topics on where the BRICS may not be able to get together towards a coordinated effort. For example, the energy transition.
Russia is one of the biggest countries by reserves of gas and energy in general, while China is trying to get dominance over the market of electrical vehicles and renewable energy generation. Obviously, those are two models of energy generation which will sooner or later collide. China could try to take over the market of electrical cars in India and both China and India being the main consumers of energy within BRICS, it would translate to a existential threat against the Russian economy in the long term.

That is only one example, there are more which are less obvious.

That doesn't sound bad, but there's a nuance. The nuance is in the PURPOSE of the participants. If India really had an interest in creating an economic union, to obtain economic benefits in the region, China - only personal benefit, which tried to realize through the "hype" of the slogan "abandon the dollar!", but according to the Chinese idea - further followed "yuanization", under the slogan of "single currency"..... But the plan to "save the Chinese economy at the expense of the pockets and economies of the members of the union" failed. And now that there are problems among the BRICS members (India-China, Russia-India, Russia-China, Argentina, ....) it seems to me that it is difficult to unite them not only by a common currency but also as a full-fledged union. Because some of them have already shown that they will "pull the blanket over themselves" ignoring the interests of other participants. So most likely BRICS is waiting for "reforming"

Your opinion of other countries has nothing to do with ditching the dollar or economy for that matter.

The economic crisis of 2008 was caused exactly because of what the US banking system was doing which is the definition a Ponzi scheme. The worst part is that it was not and still is not the only case of Ponzi scheme...

Well that is shortsighted at best.
I have seen a little of the world and many pariah states deserve that title.

Countries where judicial and executive are one and the same are exactly that.

The financial turmoil in 2008 was due to excesses and a lax executive control.
Some go that far to say that was due to politics benefitting from it.

Most accusations lack sources though, so they are gossip, not more nor less.

US has not have stability for a very long time. Its economy has also been too fragile, basically ever since they turned into a Ponzi scheme; we saw its fragility in 2008 and those who woke up created an an exit called Bitcoin. Now more people are waking up and are making another centralized exit called BRICS.

Of course any country that seeks to "ditch the dollar" becomes a pariah state in the eyes of the printers of the dollar

One word: Petrodollar

This clearly helps because from the start Russia had prepared this plan long ago, and why it all started when it attacked Ukraine. At that time many  people thought that Russia would experience an economic  crisis as a result of wasting its aggressive costs but up to now they appear to be getting stronger and more transparent in opposing the US Dollar. Meanwhile Iran in this case still doesn't like the US, which has always  interfered in its affairs in the past. With Russia of course Iran will  benefit because it is pushing their goal of creating a new currency with a system that is not  tied to the dollar. Capitalizing on natural  resources which play an important role in various  countries is able  to pressure them to take new payment options.

Is the US threatened? In general whether we admit it or not, we feel threatened and will lose sources of support from  various countries that  are moving from the dollar to the new currency that BRICS is creating. Don't think that the US is fine and is still thought to be able to cover this up.

Why do I have the feeling that this is old news from 2022? Everybody knows that Russia and Iran are anti-USA. Ditching the US dollar seems like common sense for those two countries, especially after all the western sanctions, that were imposed over both Russia and Iran.
Will this move help both countries? I don't think that it will have any major impact over their economies. The economies of Russia and Iran will be fine with or without the US dollar.
Will this move have any impact over the US dollar? I guess that it might have a small negative impact. The US dollar won't collapse anytime soon, but it's role in global trading will decrease slowly.

I don't know whether this movement will help both countries or not but the US dollar still dominates the economy today. It's hard to throw away the US dollar when the US is as powerful as it is now.
It might work for local trade but it might not be easy for international trade because other countries still use the US dollar as a benchmark for payment in many businesses.
Maybe this won't have a bad impact on the US dollar because there are still many countries that use the US dollar. But if more countries will ditch the dollar, the US must find a way to get through it.
However, if more countries do it, it will slowly disturb the US dollar. If the US doesn't realize it, it will impact the US.
We'll see what the impact of what Iran and Russia will have.

I think you understand what I am saying, but I am more referring to the new ruler who will dominate the global market, not about CBDC, but that is a narrative that will be built on the same schedule in the current global transition.

But at the core what I mean is that the strongest ruler of the world economy, which is currently the US with its dollar, will try as hard as possible to maintain its position, on the other hand when they will experience defeat or shift as the leader of the global economy with its dollar, basically the dollar will no longer be in demand. And when it is replaced with a new ruler, it is likely that the US will rebel which may create conflict, just as the Soviet Union as the strongest and most powerful country before it could be defeated. and that was through the process of war conflict. and something like this has the potential to happen again, as the new power that will replace the US and its fiat money system (dollar) so far.

The countries included in BRICS (Brazil, Russia, India, China, and South Africa) are trying to gain independence from the US dollar which is the reserve currency the US dollar being the reserve currency benefits the USA a lot greater than we think because they are the reserve currency of course they have lower exchange rate and additionally they also have a really strong purchasing power

De-dollarization has been going on for a few years back and with greater progress this will definitely hit USA’s economy however this de-dollarization is happening very slowly so right now there is still no concrete effect that we can see in the USA