De-Dollarization Trend Analysis.


De-Dollarization Trend Analysis.
De-dollarization refers to the reduction of the role of the US dollar in international trade and financial transactions. It is a trend that has gained momentum in recent years, with several countries looking for alternatives to the US dollar as the dominant currency in international transactions. This trend is partly driven by concerns about the US's economic and political power, as well as its use of sanctions as a tool of foreign policy.

The recent deal between Brazil and China to use their own currencies in bilateral trade is part of this broader trend. It is worth noting that China has been actively promoting the use of its currency, the yuan, in international trade and investment, and has signed similar agreements with several other countries.

However, it is important to keep in mind that the US dollar still plays a dominant role in international transactions, and it is unlikely to lose its status as the world's primary reserve currency in the short term. The US economy is still the largest in the world, and the US financial markets are deep and liquid. In addition, many countries, especially in emerging markets, still rely heavily on the US dollar for trade and investment.

Overall, while de-dollarization is a trend that is worth watching, it is unlikely to lead to the demise of the US dollar as the dominant currency in the global financial system in the near future.