De dollarization 2024: BRICS finishes US dollar
De dollarization 2024: BRICS finishes US dollar
Fasepo: 4-7-2024
The growing trend of de-dollarization, particularly since the events of 9/11, is closely linked to the strategic use of the US dollar as a tool of economic statecraft by the United States.
This use has been characterized by leveraging the dollar's central role in global finance to enforce and implement US foreign policy objectives through sanctions and financial controls.
Since 9/11, the US has significantly expanded the use of its financial power to target not only states but also individuals and entities deemed as threats. The weaponization of the dollar became particularly evident with the implementation of financial sanctions against countries
like Iran and Russia, which were intended to exert economic pressure without direct military engagement.
For instance, sanctions have been a critical tool in US efforts to influence Russia's actions in Ukraine, leveraging the dollar's dominance to restrict Russian access to global financial markets and services.
This financial strategy relies heavily on international banking and financial communication systems like SWIFT, which, due to the dollar's dominance, fall under the influence of the US.
The use of SWIFT has enabled the US to exclude entire nations from the international financial system, significantly affecting those nations' economies and putting immense pressure on their financial stability and sovereignty.
The reaction to these actions has been a concerted push by several nations to reduce their reliance on the US dollar to avoid such vulnerabilities.
Countries, particularly those frequently at odds with US policies, have been motivated to seek alternatives that would lessen the impact of US sanctions.
This has led to increased use of local currencies in bilateral trade, the accumulation of gold reserves as an alternative to dollar assets, and the exploration of other international currencies for trade and reserve holdings.
The broad effects of US financial policies and the perceived overreach in using the dollar as a weapon have thus spurred on de-dollarization efforts, as countries seek to mitigate their exposure to US policy shifts and sanctions.
These efforts reflect a desire for greater economic independence and a shift towards a more multipolar global financial system, where the US dollar would potentially have less sway.
In this video, we explore the trend of moving away from the US dollar among countries in the Global South. We will discuss the rhetorical approaches and current strategies employed by the BRICS nations and other countries in the Global South as they seek alternatives to the US dollar in international trade and finance.