De-dollarization is a significant trend that is gaining momentum across Eurasia, with 93% of trade within the Eurasian Economic Union (EAEU) now being conducted in national currencies. This shift underscores a strategic move away from the dominance of the U.S. dollar in international trade, which has the potential to reshape the global financial landscape.

The Eurasian Economic Union, comprising Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, has been at the forefront of this de-dollarization movement. According to recent statements by Russian officials, the use of national currencies within the EAEU has surged to 93%, indicating a significant decrease in reliance on the U.S. dollar for trade transactions.

This shift towards conducting trade in national currencies is seen as a strategic move to reduce exposure to external factors, such as fluctuations in the value of the U.S. dollar and potential sanctions imposed by Western countries. By relying more on their own currencies, EAEU member states aim to bolster their economic sovereignty and insulate themselves from external pressures.

The trend of de-dollarization in Eurasia is not limited to the EAEU alone. Countries like Russia and China have been actively promoting the use of their own currencies in bilateral trade agreements, reducing the need for the U.S. dollar as an intermediary currency. This move is part of a broader strategy to diversify away from the dollar-dominated global financial system and promote multipolarity in international trade.

The implications of this de-dollarization trend are far-reaching. As more countries shift towards conducting trade in their own currencies, the role of the U.S. dollar as the world's primary reserve currency could be gradually diminished. This could have implications for the stability of the global financial system and the power dynamics in international trade.

While the shift towards de-dollarization presents challenges, such as the need to build infrastructure for clearing transactions in national currencies and ensuring currency stability, it also offers new opportunities for increased economic cooperation and independence among participating countries.

Overall, the rise of de-dollarization in Eurasia, exemplified by the significant increase in trade conducted in national currencies within the EAEU, signals a fundamental shift in the global financial landscape. As countries seek to assert their economic sovereignty and reduce reliance on the U.S. dollar, the repercussions of this trend are likely to shape the future of international trade and finance.

Source: https://news.bitcoin.com/russias-eaeu-trade-reaches-93-de-dollarization-in-blow-to-us-dollar-dominance/