Dollar

2024

<ul>
 <li>Russia and Iran have decided to replace the US dollar in their trade to strengthen their economic sovereignty.</li>
 <li>The decision could have profound impacts on the international financial landscape, leading to a realignment of global currency relations.</li>
</ul>
The recent decision by two influential members of the <a href="https://www.ethnews.com/brics-currency-ambitions-collapse-under-us-pressure/" rel="noopener noreferrer nofollow">BRICS</a> alliance, Russia and Iran, to stop using the US dollar in their bilateral trade represents a significant step towards economic independence.
This move reflects not only a desire for autonomy amidst external economic pressures but could also signal the beginning of a comprehensive shift in the global financial markets.
<h2 id="a-collaborative-strategy-against-the-dollar">A Collaborative Strategy Against the Dollar</h2>
The year 2024 marks a turning point in the financial interactions between Russia and Iran. Mohammad Reza Farzin, the governor of the Iranian Central Bank, confirmed that all trade transactions between the two countries are now being conducted in their national currencies, the Russian ruble and the Iranian rial.
An increase to 96% of transactions being carried out in these local currencies illustrates these nations’ resolve to move away from the dollar.
In addition to the currency agreement, the two countries have further strengthened their financial connectivity. Russia has integrated Iran’s Mir payment system, allowing Iranian citizens to directly access their accounts via ATMs in Russia.
This move is a significant step away from the <a href="https://www.ethnews.com/swift-sets-to-bridge-traditional-finance-and-tokenized-assets/" rel="noopener noreferrer nofollow">SWIFT</a> network, heavily influenced by the US, and provides a resilient alternative to American economic sanctions.
<h2 id="global-implications-of-a-dedollarized-economy">Global Implications of a Dedollarized Economy</h2>
The strategy of Russia and Iran is an integral part of a broader dedollarization movement pushed by the BRICS group. This movement has the potential to shake the dominance of the dollar in international financial systems and could lead more emerging countries to follow suit.
A decline in global demand for the dollar could not only disrupt the existing supply-demand balance but also increase inflationary pressures in the US.
For emerging countries, this initiative offers a chance to reduce their dependence on volatile exchange rates and associated economic sanctions. In the long run, it could lead to a reshaping of international currency relations, where regional and bilateral currency systems play a more significant role.
The decision by <a href="https://www.ethnews.com/russia-implements-tax-reforms-on-bitcoin-mining-and-crypto-transactions/" rel="noopener noreferrer nofollow">Russia</a> and Iran to move away from dollar dependency clearly shows their desire for greater geopolitical and economic autonomy. This development could bring significant changes to the future of global trade and the role of state currencies in a dynamically changing international context.
The post <a href="https://www.ethnews.com/brics-nations-russia-and-iran-abandon-us-dollar/" rel="noopener noreferrer nofollow">BRICS Nations Russia and Iran Abandon US Dollar</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

BRICS Nations Russia and Iran Abandon US Dollar

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