this post was submitted on 24 Jul 2023
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It is because the West sanctions and freezing the money of Russia triggered fears of the same in the Global South, so dedollarisation is happening. Countries are looking for alternatives to not fall in the weaponisation of the dollar, there was a recent article by a former CIA advisor talking about this I will try to link it.
https://www.bloomberg.com/news/articles/2023-07-17/india-indonesia-plan-local-currency-trade-fast-payments-links https://ca.sports.yahoo.com/news/india-ties-uae-settle-trade-114534898.html https://archive.is/K279M https://www.al-monitor.com/originals/2022/07/iran-says-us-dollar-officially-ditched-trade-ally-russia https://www.reuters.com/world/americas/what-brazil-argentinas-currency-union-really-means-2023-01-23/ https://en.mercopress.com/2023/07/04/argentina-insists-on-local-currency-agreements-within-mercosur https://www.tbsnews.net/bangladesh/bangladesh-diversifies-trade-currency-transactions-begin-rupee-663326
Indonesia, UAE, Argentina, Brazil, Iran, Bangladesh, Sri Lanka, etc. While these countries are not actively 100% ditching the dollar right now the simple fact that they are starting to use alternatives speaks of a trend. And we still need to wait for the BRICS to release their plans on their currency, after which the process will accelerate more. It is not only 3 countries, and it is, in my opinion, not so important how much economic power they have, but rather that the strength of the dollar lies in its universal use.
People have been saying this for over a decade. It hasn't happened. Heck, Gordon Chang's entire career is based off writing a "China is about to collapse" book every couple years. If anything, their economic position has continued to strengthen.
The global south has been dealing with the downside of dollar hegemony for decades. It's not like people suddenly got afraid due to recent sanctions. This ball has been rolling for decades.
I agree, but that certainly accelerated it, one thing is to sanction a small island or third world country and another one is to sanction a country like Russia, the message is different. If it was Russia's turn it could be Saudi Arabia's next, or whomever.
Russia is special in the West and I don't think anyone has any illusions about that. No one except maybe China is comparable to Russia as the ebil spoopy bad guyz