Topic: Ditching US dollar (Read 675 times)

Look at the major fiat currencies apart from USD. We have British Pound, Euro, Japanese Yen, Chinese Yuan, Russian Ruble, Indian Rupee and Korean Won. None of these currencies have a reputation that is better than the US Dollar. There are a few currencies that can be considered as stronger than the USD, such as Swiss Franc and Singapore Dollar. But they don't have much liquidity and can't be used in a large scale for international trade. So I would say that at least for the next 20-30 years, US Dollar will remain as the currency of global trade.

All we talk is just the oil but our fiat currencies are based on more of MBS mortgage backed securities.
In other words central banks print money wall street take it playing with this money and then through commercial banks drive up real estate prices.
It's not the oil what backing up USD currency supply so much but more MBS that's why the real estate prices are so high becouse they keep making new money out of mbs with more mbs mortgage contracts as collateral.
It's kind of secret of wall st.

the dollar is fighting back so it's not really going to disappear but it will exist like all major currencies. 

as an individual, although we are seeing news about dedollarization, it may still be good for you as a person to use the dollar especially because its value is still strong compared to your local currency. which means the benefit of using it is way advantageous for people in the 3rd world counties.  you could care less about geopolitics still when it comes to money. 

I think that the refusal to use the dollar is necessary in order to circumvent the ban on the use of the global payment system SWIFT under sanctions. For countries that want to switch to payments in their national currency, this is an excellent opportunity to strengthen it. Ultimately, the dollar may depreciate and countries may refuse to use it; then there will be a catastrophe for the dollar.

Another two currencies have ditch the US Dollar and they are India and Nigeria. I just saw it in my headline Newspaper review. BRICS: 2 New Countries Agree To Ditch US Dollar. Really recently African countries are suffering from the inflation in the continent because of the rising of dollar but I don't really k ow if this BRICS can work out in the world because the usa dollar has gain ground so it is hard for countries to leave it because of the international transactions.

Now the question is if the BRICS countries trade their currencies together won't they pay things from another country? And that is where the use of dollar will come again.

BRICS member countries are considering trading among themselves in their currencies but the BRICS currency will not easily dominate it. The U.S. financial system is large, including banks investment firms and other financial institutions. These institutions can handle large amounts of international transactions. Investors are also interested in buying dollar denominated bonds because of their safety dollars can be exchanged anywhere this is also a big advantage.

Like you said, a lot of countries depend on the us dollar for carrying out economic trades. This just proves how dependent a lot of countries are to the united states of america. It makes me think just how impactful brics can be. I am aware that they have very strong and powerful countries on their side however if ditching us dollar will be a problem for other countries, which side will they be on?

That is exactly what the other countries want to happen however I don’t think the us dollar is that weak to be brought down immediately in no time. We’ll probably see some resistance from the us government in an attempt to keep their economy afloat.

They already are one of the big countries out there alongside the US. They might not be the strongest currency but they are dominating a lot of other sectors. Land, political power and just economic activity are some of the things where China has always excelled in. I do not want to be under a specific global currency because even if it’s not US we are still basically following one country. I do hope that my country’s currency becomes huge as much as other countries and not be left out once again.

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"