The US dollar has dominated the world for decades. But this year, 11 countries are taking a surprising step: they're starting to move away from the greenback.
What's really happening? Is it the end of the dollar? Not so fast. What's happening is a gradual shift, with reasons ranging from sanctions to simple decisions to protect their own economies.
Is the dollar losing ground?
Even though you hear everywhere that the dollar is in decline, the reality is more complex. The dollar remains the strongest and most widely used currency in the world. It accounts for about 58% of international reserves and is still the basis for most global transactions.
Why do these countries want to move away, then? It's not because they hate the dollar or want to ban it. Rather, they're looking for alternatives so they don't depend so much on a single currency. This way, they reduce risks in the face of sanctions or international instability.
Who's taking the step and why?
Let's look at some concrete examples:
Russia has had to use more rubles and yuan for its transactions, due to Western sanctions. The dollar isn't banned, but it's much harder to obtain.
In addition, they're preparing a digital ruble payment system for 2025. Belarus, closely linked to Russia, uses almost exclusively rubles for its trade with Moscow, thus avoiding problems with sanctions.
Uzbekistan and Turkmenistan also tightly control their currencies and prefer that domestic transactions be carried out in local currency. Armenia, Azerbaijan, Moldova, and Ukraine are strengthening their currencies or, like Ukraine, moving closer to the euro.
In all these cases, the dollar doesn't disappear, but its use is limited and there's an effort to strengthen local or regional currencies.
It's not the end of the dollar, but a slow adjustment
This change won't happen overnight. Joyce Chang, an expert from JP Morgan, explains it very well: dedollarization is a process that can take decades. The dollar has the advantage of global trust and the depth of its financial markets, things that can't be easily replaced.
In addition, other currencies like the yuan or the euro are growing, but they still can't cover everything the dollar does. That's why the world is seeing a gradual change, not a sudden fall.
The transition toward a system less dependent on the dollar will be slow, marked by adjustments and negotiations that reflect the complexity of the global economic landscape.