The global status of the dollar, as the main reserve currency, is being called into question by emerging economies
Alliances between Asia, Africa and South America are trying hard to reduce their dependence on the US dollar, with groups such as BRICS and the Association of Southeast Asian Nations leading the way.
This is because emerging economies are concerned about the potential economic impact of US sanctions and are therefore eager to support their currencies and domestic economies. In 2023, the de-dollarization movement gained momentum and nearly two dozen countries expressed a desire to abandon the Anglo-Saxon currency.
In the same period, two different unions formally committed to abandoning the US dollar in international trade. In March, the ASEAN bloc took the lead and decided not to use the currency in cross-border transactions.
Leaders of ten Southeast Asian countries jointly announced their intention to stop using the US dollar and instead promote their local currencies. Moreover, at its summit held in August this year, the BRICS decided to suspend the use of the currency for payments in international trade.
Within the framework of this ten-nation alliance, BRICS will conduct trade using local currencies and is also exploring the possibility of creating a common currency among member states.
In short, twenty-one countries have officially agreed to abandon the US dollar in global trade by this year.
The ASEAN bloc consists of Brunei, the Philippines, Singapore, Thailand, Indonesia, Cambodia, Laos, Malaysia, Myanmar and Vietnam. In addition, the BRICS alliance includes Brazil, Russia, India, China, South Africa, Egypt, Iran, Argentina, Saudi Arabia, the United Arab Emirates and Ethiopia.