De-Dollarization Dreams: Are Nations Ready for a Post-Dollar Era?
Global trade blocs, such as BRICS and ASEAN, are actively looking for an alternative to the US dollar-based trade mechanism. Sanctioned countries, such as Iran and Russia, have also begun ditching the dollar for other currencies. The de-dollarization sentiment has seen an incredible rise in popularity over the last decade. While there is no denying the growing anti-USD sentiment, are nations prepared to face a post-dollar future? Let’s discuss more. Are Nations Ready To Commit To De-Dollarization Dreams? Source: Shutterstock The US dollar-based trade mechanism is a well-oiled system. Moving away from the greenback may prove more expensive than many realize. The USD’s liquidity is one of its strongest suits. Other currencies are tiny in front of the dollar’s massive available liquidity. The US dollar also makes up the majority of global foreign exchange reserves. Replacing this gigantic figure is a gargantuan task. It seems almost unlikely that the dollar’s positi...