De Dollarization: Are American Allies (the EU) joining BRICS move?
De Dollarization: Are American Allies (the EU) joining BRICS move?
Fastepo: 5-30-2024
You may have heard the term de-dollarization. This concept involves reducing reliance on the US dollar for international trade, financial transactions, and reserves.
While it is often associated with eastern or anti-western countries like the BRICS nations and their allies, the trend has now expanded beyond these regions.
Surprisingly, even the European Union has joined the movement, reflecting a broader shift in global financial strategies. The trend towards dedollarization in Europe and globally is gaining momentum, driven by several geopolitical and economic factors.
The EU's drive towards de-dollarization is motivated by several strategic factors. Primarily, it aims to reduce vulnerability to US sanctions, which impact European businesses by limiting their ability to engage in transactions involving the dollar
Enhancing financial autonomy is another key motive, allowing the EU to implement independent economic policies and increase the euro's stability as a global currency.
Promoting the euro in international trade helps mitigate exchange rate risks and strengthens the EU's geopolitical influence. Economic stability and risk diversification are also crucial, as reliance on the dollar exposes the EU to economic fluctuations and US policy changes.
Additionally, facilitating trade with countries like China and Russia, which are also pursuing de-dollarization, and leveraging technological innovations in financial systems, such as SEPA and the digital euro, further support this strategic shift
In this video, we dive deep into the concept of de-dollarization from the EU's perspective.