Page 6 - De Dollarisation News Today

The foreign ministers of BRICS nations will reportedly attend the discussions on a range of issues including the expansion of the bloc in June.

Indonesia is following the lead of BRICS (an acronym for five leading economies: Brazil, Russia, India, China, and South Africa) in de-dollarisation and seeking ways to stop paying for global trade in the US dollar.

Dollar saw 8% decline in 2022 in one year, equivalent to 10 times the average annual pace of erosion in the USD’s market share in the prior years

Using the dollar to punish countries or keep them in line is causing geopolitical rifts and fears on top of a blooming of payment and settlement alternatives. Yet what the world needs to rise to its many challenges is more engagement, dialogue and collaboration.

Bangladesh and Russia agreed to use the yuan to settle payment for a nuclear plant amid Beijing’s efforts to increase the use of the Chinese currency overseas and decrease reliance on the US dollar.

A delegation of Indias central bank - Reserve Bank of India (RBI) - and SBI visited Bangladeshs capital Dhaka in April to discuss and finalise settling trade in INR and taka

After the West imposed sanctions on Russia, Bangladesh was looking out for ways to settle $110 million for the Rooppur power plant which is under construction in the South Asian country

Several countries have now given up settling cross-border trade in US dollar and are using their local currencies

Brazilian President Lula lend his voice to Chinas efforts to shed the dollars dominance and promote the use of the renminbi (RMB)/ yuan in overseas trade settlement

Roubini also said, India and a few other emerging markets might be a good place to invest, both fixed income and equities