CIS Countries Abandon Dollar in Cross-Border Transactions
The Commonwealth of Independent States (CIS) has made a significant move towards reducing its dependence on the US dollar in international transactions. Eleven countries, including Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine, have started to abandon the use of dollars in their cross-border operations.
The move is part of a trend known as de-dollarization, which aims to give more value to local currencies, reduce dependence on the dollar, and improve competitiveness in currency markets. The CIS countries have already made significant progress in reducing the use of dollars, with 85% of cross-border transactions now carried out in local currency.
Russian President Vladimir Putin has stated that 'the use of national currencies in mutual payments is expanding', with their share in trade operations among CIS members exceeding 85%. The move is seen as a way to strengthen economic sovereignty and generate new fiscal opportunities for the countries involved.