In a significant move that’s being closely watched across the globe, eleven countries have announced their decision to abandon the use of the US dollar in cross-border transactions. This development has sent shockwaves throughout international markets, with experts weighing in on its implications.
At the heart of this shift is the desire by these nations to strengthen their own currencies and reduce their reliance on the US dollar. By doing so, they aim to gain a competitive edge in foreign exchange markets and minimize the risks associated with fluctuations in the value of the dollar.
The decision was made during the recent CIS Summit, where the presidents of each country signed an accord to create a new financial environment that’s less dependent on the dollar. The participating countries include Armenia, Turkmenistan, Uzbekistan, Azerbaijan, Belarus, Moldova, Russia, Tajikistan, Kazakhstan, Kyrgyzstan, and others.
This movement towards de-dollarization is seen as a major shift in the global financial landscape. By reducing their exposure to the US dollar, these nations aim to become less vulnerable to fluctuations in its value, which can be caused by US policies or economic crises.
As a result of this development, local currencies are likely to gain more confidence, leading to increased domestic investment, savings, and economic growth. This, in turn, could create new opportunities for commercial and financial agreements in local or foreign currencies, diversifying revenue streams and strengthening ties with regional business partners.
While the US dollar has long been a dominant force in global markets, this move by the eleven countries marks an important step towards reducing American influence over the world economy. As the trend continues to unfold, it will be interesting to see how other nations respond and whether they opt for de-dollarization.
Source: La Grada Online
