Still, cocky US remains confident of its Dollar dominance. Its Treasury Secretary Janet Yellen said on March 23 that Russia and China have the motivation to try to develop an alternative to the US dollar but it would be "tremendously difficult" for them to do so.
However, shortly thereafter, Russia publicly stated that the BRICS countries, which account for more than 40% of the world's population and nearly a quarter of global GDP, are working to develop a "new currency" and that "the transition to settlement in national currencies is the first step. The next step is to offer a new currency in circulation in the near future, digital or otherwise. It is expected that this new form of currency will be announced, possibly in August of this year". The new currency is not only tied to the value of gold but may also be tied to "rare earths or other resources".
Already, Russia and China are trading in their own currencies.
India officially announced that it is using multiple currencies, including the local rupee and other non-Dollar currencies, for global trade as a direct substitute for the US dollar in order to avoid volatility in the Indian currency and markets due to monetary strategies such as interest rate hikes by the US Federal Reserve.
China and Brazil – two major emerging economies and BRICS members – reportedly reached a deal to trade in their own currencies, ditching the US dollar as an intermediary. As reported by Agence France-Presse on March 29, citing the Brazilian government.
And Brazil and Argentina are planning on a common currency for the region in a bid to distance themselves from the Dollar.
Meanwhile, France made baby steps to move away from the Dollar – last month, the country’s integrated energy and petroleum company TotalEnergies and China's national oil company CNOOC sealed the first ever yuan-settled energy deal involving some 65,000 tons of Emirati LNG. (My post "US Dollar Under Serious Threat" dated April 02, 2023 refers).
Israel is fast-forwarding its de-dollarization by selling US Treasuries and increasing its Yuan reserves.
Southeast Asian nations in ASEAN are de-dollarizing their trade, promoting local payment systems. The finance ministers and governors of the central banks of the member states of the Association of Southeast Asian Nations (ASEAN) met on March 28 – and according to the news website ASEAN Briefing, at the top of their agenda were “discussions to reduce dependence on the US dollar, Euro, Yen, and British Pound from financial transactions and move to settlements in local currencies”.
Kenya has signed deals with Saudi Arabia and UAE to buy oil with its local currency, Kenyan Shillings. And Ghana reportedly buys oil with gold. The Dollar is being cast aside.
At least 85 countries have already begun the process of de-dollarization. As a matter of fact, whether the US wants to admit it or not, its Dollar is weakening day by day.
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