21 countries officially agree to ditch the U.S dollar 2023.
The US dollar is facing challenges from developing countries that are threatening its status as the global reserve currency.
The BRICS group, Brazil, Russia, India, China and South Africa is at the forefront of challenging the US dollar’s status. Nearly two dozen countries have already ditched the U.S. dollar, fearing U.S. sanctions could hurt their economies and, therefore, wanting to strengthen their local currencies and economies.
The US dollar is facing challenges from developing countries that are threatening its status as the global reserve.
In March 2023, the ASEAN bloc was the first to decide not to use the U.S. dollar for cross-border transactions, followed by the BRICS alliance in August 2023, which concluded to stop settling international trade using the U.S. dollar and use local currencies for trade instead.
Many countries are looking to reduce their dependence on the U.S. dollar to strengthen their own economies and have more control over their monetary policies. By ditching the U.S. dollar, they aim to promote economic independence and foster closer regional cooperation.
