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.
Topic: Ditching US dollar - page 4. (Read 520 times)
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?
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?
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.
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.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?
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.
-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. 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.
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
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.
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?
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.
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.
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.
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.
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. 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?
~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.
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.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?
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.
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?
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?
Jump to: