CIS Nations Ditch Dollar in Favor of Local Currencies
The de-dollarization trend is gaining momentum in international transactions as 11 countries from the Commonwealth of Independent States (CIS) reduce their reliance on the US dollar. This shift aims to strengthen economic sovereignty and provide new fiscal opportunities, with 85% of cross-border transactions already carried out in local currencies.
The CIS leaders have chosen to abandon the use of dollars in commercial transactions to reshape the value of their own currencies and boost competitiveness in foreign exchange markets. The trend began after the sanctions imposed by the US on Russia in 2022, with Russian President Vladimir Putin stating that 'the use of national currencies in mutual payments is expanding'.
The effects of de-dollarization could be far-reaching, reducing the influence of the United States in the global economy and creating new markets based on local currencies. However, this process may also lead to negative consequences for the dollar, potentially affecting its value and role as a predominant reserve currency worldwide.