Dollar Loses Ground as CIS Countries Abandon US Currency in Cross-Border Transactions

The de-dollarization trend is gaining momentum as several countries abandon the US dollar in favor of their local currencies. The Commonwealth of Independent States (CIS), comprising 11 nations, has reduced the use of the dollar to less than 15% in cross-border transactions. Instead, 85% of these transactions are now carried out in local currencies, according to Russian President Vladimir Putin.

The CIS countries include Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine. By reducing their dependence on the dollar, these nations aim to strengthen their economic sovereignty and provide new fiscal opportunities.

The de-dollarization trend is a significant shift in the global financial system. It could lead to negative consequences for the US dollar, including a decrease in its value due to reduced demand in international transactions. This, in turn, may affect its role as the predominant reserve currency on the global stage.