DOOMED! Massive Wave Of Countries JUST DITCHED The Dollar! | Global De Dollarization Is Exploding

DOOMED! Massive Wave Of Countries JUST DITCHED The Dollar! | Global De Dollarization Is Exploding
#economy #money #marketcrash

De-dollarization has recently been a growing trend in emerging markets, causing quite a stir in the financial world.

Media reports on April 1 indicated several countries announced plans to reduce their reliance on the US dollar. Let's explore how other nations are moving away from using the US dollar in global commerce, which could have dire implications for the US economy!

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It's been several decades since the US dollar has been the king of global trade and capital flows. But now, many countries are searching for other options to decrease their reliance on the United States.

This visual representation showcases how the US dollar became the top international reserve currency. It also highlights the latest attempts made by different countries to de-dollarize and decrease their dependence on the US financial system.

The United States quickly rose to the financial world's top after World War I. Although the country only entered the war in 1917, it emerged stronger than its European peers.

Consequently, the US dollar took over the pound sterling's position as the international reserve currency, and the US also received a significant amount of gold during the war.

In 1944, the dollar's prominence grew further when 44 nations signed the Bretton Woods Agreement, establishing an international currency exchange system that relied on the US dollar as its backbone.

The US dollar was then linked to the price of gold. In the late 1960s, the US had stiff competition from Europe and Japan in the export game. Dollars were everywhere, but it became tricky to support them with gold.

So, in 1971, President Nixon ended the direct convertibility of dollars to gold, which meant the gold standard was gone. It also meant there was no limit to the amount of currency that could be printed. The US dollar still reigns as the international reserve currency, but it's not as strong as it once was.

Its purchasing power has been decreasing over the years. Now, Russia and China are taking action to reduce their dependence on the US dollar.

Other countries worry about America's control over the global financial system and its ability to use it as a weapon. And to counter this, they're exploring alternatives to lessen the dollar's dominance.

When America and some Western countries imposed economic sanctions on Russia for invading Ukraine, China, and Moscow worked together to decrease their reliance on the dollar and promote collaboration between their financial systems.

After the invasion that happened in 2022, there has been a significant increase in the ruble-yuan trade.

Russia and Iran have been collaborating on creating a gold-backed cryptocurrency, as reported by the Russian news agency Vedmosti. Moreover, central banks, including Russia and China, have been purchasing gold at the fastest rate since 1967 to diversify their reserves from the dollar.

Brazil is also distancing itself from using the currency with the help of China. There have been reports of Brazil and China agreeing to use their own currencies instead of the US dollar in trade transactions.

This means they can directly exchange yuan for reais without first converting to the US dollar. It's a significant move for both countries, allowing them to conduct trade and financial transactions more efficiently.

ApexBrazil revealed a new plan to cut costs and boost trade and investment between Brazil and China.

China currently holds the top spot as Brazil's biggest trade partner, with the United States coming in second place. China is responsible for over a fifth of all imports and more than a third of all exports in Brazil. In 2009, China became Brazil's biggest trading partner, leaving the United States behind.

Chinese investment in Brazil has grown, particularly in high-tension electricity transmission lines and oil extraction, making Brazil the largest recipient of Chinese investment in Latin America.

Since taking office in January, Brazilian President Luiz da Silva has made efforts to strengthen ties with Beijing, following a period of tension with Jair Bolsonaro, who had used anti-China language during his campaign and time in office.

The ASEAN Finance Ministers and Central Bank Governors also met in Indonesia. They want to discuss using local currencies for financial transactions instead of relying on the US Dollar, Euro, Yen, and British Pound.

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