Recent Moves Away from U.S. Dollar Dominance

China and Brazil, on March 29, reached a deal to trade in their currencies without the use of the U.S. dollar as an intermediary. China is Brazil's biggest trading partner, recording a record $150.5 billion in bilateral trade in 2022.

In Southeast Asia, finance ministers of the Association of Southeast Asian Nations (ASEAN), in a joint April 1 press release, announced their decision to reinforce financial resilience through the use of local currency to support cross-border trade and investment in the ASEAN region, moving away from the U.S. dollar, euro, Japanese yen and British Pound.

India's central government unveiled its new Foreign Trade Policy on March 31, which is expected to facilitate greater trade, boost manufacturing, help to shift away from the U.S. dollar, and make the rupee a global currency.

In Russia, Deputy Chairman Alexander Babakov of the Duma informed on March 30 that the BRICS bloc of emerging economies -- Brazil, Russia, India, China, and South Africa -- is working on developing a "new currency" that will be presented at the organization's upcoming summit in Durban in August.

(News agencies)

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This article was published in

Volume 53 Number 5 - March 2023

Article Link:
https://cpcml.ca/Tmlm2023/Articles/MS530514.HTM

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