Over the past few years, the global economy and financial markets have witnessed a remarkable shift – the process of de-dollarization has not only accelerated, but has reached unprecedented heights. Behind this change is not only the pursuit of economic autonomy by various countries, but also the inevitable trend of the international financial system to seek diversification and reduce dependence on a single currency.
The outbreak of the Russia-Ukraine conflict and the ensuing international sanctions have undoubtedly accelerated this process. The U.S. exclusion of Russia from the international payment system SWIFT, which was intended to be a blow to the Russian economy, has unexpectedly pushed many countries, including Russia, to find or strengthen alternatives to non-dollar settlements. This series of actions not only shows the potential vulnerability of the dollar's dominance, but also prompts more countries and regions to reconsider their foreign exchange reserves and trade settlement diversification strategies.
Especially in the context of the Russia-Ukraine conflict, Russia has managed to carry out most of the ** settlements in non-USD currencies, a practice that is seen by other countries as a clear signal of de-dollarization. Similarly, China has made significant progress in promoting the internationalization of the renminbi, and the proportion of the renminbi used in international transactions has been increasing, especially in bilateral relations with some countries**.
In addition, the cooperation of the BRICS countries has further promoted the process of de-dollarization. The BRICS countries are increasingly using their own currencies for transaction settlement, reducing their dependence on the US dollar. With the expansion of the BRICS organization, more countries have joined the process, which not only strengthens the influence of the BRICS as a bloc, but also brings new diversification trends to the global financial market.
De-dollarization is not a goal that can be fully achieved in the short term, but current trends and speeds suggest that global financial markets are at an important turning point. De-dollarization is expected to continue in the coming years as more countries and regions seek economic policy autonomy and financial security, which will have a profound impact on the global status of the dollar, the structure of international financial markets, and even the balance of the global economy.
The challenge for the United States now is how to respond to this trend and ensure the stability and attractiveness of the dollar while maintaining its leadership position in the global economy. However, as de-dollarization accelerates, the diversification of global financial markets will provide more choice and flexibility for international** and investment, perhaps as necessary to build a more stable and equitable international financial system.