Nations Worldwide JUST UNITED To Denounce The Dollar | Crushes Global Dollar Trade
Nations Worldwide JUST UNITED To Denounce The Dollar | Crushes Global Dollar Trade
Tech Revolution: 7-17-2023
There's something big happening that's going to shake things up for those who have been banking on the United States!
It's like a rebellious wave that's rising against the long-standing reign of the US dollar in global trade. You know, the dollar has been sitting on its throne as the international exchange currency since 1944 when the Bretton Woods regime gave it the crown.
But guess what? That throne is starting to crumble!
Countries all over the world are now ditching the dollar and using their currencies to do business with each other.
Just recently, Iran and Indonesia made headlines by deciding to trade using their own money. President Ebrahim Raisi of Iran flew over to Indonesia and had a conversation with President Joko Widodo. And guess what? They agreed to trade in their currencies.
Believe it or not, there are already 60 countries that have jumped on this bandwagon. Even India, which has been getting cozy with the US lately, is doing foreign trade using its currency. They've got trade agreements with a whopping 19 countries!
But what's even cooler is that India has managed to stand tall amidst Western pressure, especially from the US. Despite all the tension between Russia and Ukraine, India is still trading with Russia and paying for oil imports in Indian rupees. Talk about defying the odds! India, being the world's fifth-largest economy, is on a mission to make its currency, the rupee, a big shot in global trade. They want to reduce their dependence on the US dollar, and boy, are they determined.
It's like they're saying, "We don't need your dollar, we've got our own game!"
It's fascinating to see how the world is evolving and challenging the status quo. It seems like Iran, the current head of this club called ACU, is also on a mission to shake things up. They want to minimize the use of the dollar within their group to make payments easier and more efficient.
But Iran isn't the only one with a master plan. Brazil and China recently cooked up a brilliant idea too. They made a pact to trade using their currencies, bypassing the good old greenback in the process. And guess what else? India and Malaysia hopped on the train too! They signed an agreement just a few months ago to increase the use of the Indian rupee in their cross-border business.
And you won't believe this, even France, a close buddy of the United States, is joining in on the fun. They're starting to settle their transactions using the Chinese yuan.
So why are all these leaders taking such bold steps? Well, according to them, the US dollar has become a weapon. It's being used to advance America's foreign-policy interests and even punish those who dare to disagree. It's like a high-stakes game of currency politics!
This currency politics is very evident in Russia. The United States has been giving Vladimir Putin's regime a serious financial smackdown in response to its invasion of Ukraine. The Biden administration has slapped sanctions on them, frozen a massive amount of Moscow's cash, and kicked them out of the global banking club with the help of their Western buddies. It's got everyone realizing just how much they depend on the almighty dollar, no matter what they think about the whole war situation.
But here's the juicy part: Russia, which is cozying up to China in a big way, has decided to ditch the dollar and embrace the yuan as its go-to currency. The Russian Prime Minister spilled the beans, saying that they've gone from using their currencies for just a quarter of their transactions with China in 2021 to two-thirds in the following year.
And get this, the yuan's share of their trade skyrocketed from a measly 4 percent in January 2022 to a whopping 23 percent by the end of the same year! In February 2023, a report by Bloomberg stated that the yuan has overtaken the dollar as the most traded currency in Russia. The scales are tipping in favor of the yuan.
But Russia isn't the only one shaking things up. Brazil, part of the BRICS gang, is jumping on the yuan bandwagon too. During a recent visit by the Brazilian President to Beijing, they cooked up a plan to trade with the yuan. Their trade volume with China is worth a cool $150 billion.