De-Dollarization: Key Reasons and Global Impact

Countries around the world are actively seeking alternatives to the US dollar for international trade and reserves. This trend has dramatically increased in 2025 as numerous countries are adopting different approaches to wean themselves off the American currency, reflecting a vital change in the world’s financial system since World War II.

 

Key Reasons and Global Impact

As of writing, major economies from Asia, Africa, South America, and even some parts of Europe are following their own footsteps in leaving the dollar hegemony behind. This movement is fundamentally altering global trade patterns and also putting into question the international monetary arrangement which has been around for almost eight decades.

BRICS Alliance Leading Global De-Dollarization

The BRICS alliance has created alternative payment systems and increased trade in local currencies. Their collective efforts represent the most organized challenge to dollar hegemony in recent years.

Mohammad Reza Farzin was clear about the fact that:

“We (BRICS members Iran and Russia) have entered into a currency agreement with Russia and fully removed the US dollar. Now we only trade in rubles and rials.”

Commonwealth of Independent States Forms Dollar-Free Zone

Eleven CIS nations have announced plans to stop using the dollar, and they are currently conducting about 85% of cross-border transactions using local currencies instead of the US dollar.

Vladimir Putin said during a CIS meeting:

“The use of national currencies is widening in mutual payments. Their share in commercial operations among CIS participants has already been above 85%. The process of import phase-out is moving quickly, and thus the technology sovereignty of our country is being strengthened.”

Saudi Arabia Ends Half-Century of Dollar Exclusivity

Saudi Arabia’s decision to accept non-dollar currencies for oil transactions marks a historic shift in the petrodollar system that was established back in the 1970s.

Ghana’s Vice President Mahamudu Bawumia stated regarding their own de-dollarization efforts:

“The barter of gold for oil represents a major structural change.”

Trump Threatens Tariffs Against De-Dollarizing Nations

The United States has responded forcefully to the de-dollarization trend, with political and economic warnings against countries abandoning the dollar.

President Donald Trump declared:

“Many countries are leaving the dollar. They not going to leave the dollar with me. I’ll say, you leave the dollar, you’re not doing business with the United States because we’re going to put 100% tariff on your goods.”

Financial Experts Assess Dollar’s Future

Leading financial institutions have acknowledged the shifting landscape while noting the dollar’s continued importance in global markets. Nevertheless, experts suggest this dominance may be waning.

Joyce Chang, Chair of Global Research at J.P. Morgan, acknowledged:

“The dollar’s role in global finance and its economic and financial stability implications are supported by deep and liquid capital markets, rule of law and predictable legal systems, commitment to a free-floating regime, and smooth functioning of the financial system for USD liquidity and institutional transparency.”

S&P Chief Economist Paul Gruenwald offered this assessment:

“The U.S. (dollar) will continue to be a leading world currency, (but) it will no longer be the dominant world currency.”

The countries that want to gain monetary sovereignty and are oriented towards the protection from sanctions in dollars still adhere to the de-dollarization movement. Furthermore, many nations are creating alternative payment systems to reduce their vulnerability. Although the dollar will continue being powerful for a couple of more years, its undisputed supremacy seems to be declining now, and consequently, the repercussions for the international monetary system as well as we know it are dramatic.

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Complete List of Countries Leading De-Dollarization Efforts

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