These Are the 6 Major Economies Looking to Distance Themselves From the Dollar

China want the yuan to displace dollar-based trade, as five other countries explore alternatives.

The communist state has embarked on strategic initiatives to promote renminbi use in international trade through initiatives with the economies of Brazil, Russia, India, China, and South Africa, the Shanghai Cooperation Organization, and the Organization of the Petroleum Producing Countries.

China Wants Yuan Popularity to Be Driven by Russia

The world’s second-largest economy wants its strategic yuan initiatives to offset the dollar’s global hegemony.

Recent economic sanctions against Russia have allowed China to promote the renminbi’s potential to replace dollar-based trade.

Following a recent agreement, Brazil and China now trade with the Chinese yuan instead of the US dollar. Direct exchange eliminates the need for currency conversion.

The Brazilian Trade and Investment Promotion Agency says this switch will reduce costs and drive bilateral trade and investment.

And China is Brazil’s largest trading partner, with Chinese goods accounting for 20% of Brazil’s imports. And Chinese exports make up more than a third of all Brazilian exports.

Saudi Arabia and Iran Prepare for Dollar Independence

Saudi finance minister Mohammed Al-Jadaan suggested in January the country’s readiness to participate in non-US dollar US trading in January. The move would mark a departure from long-standing economic relations with the US.

However, until that happens, the country will explore alternatives without abandoning the petrodollars it earns from oil exports

Staying in the Middle-East, Iran’s President Ebrahim Raisi asked the Central Bank to progressively minimize the US dollar’s role in bilateral trade in favor of the Iranian rial. The central bank has progressed towards this goal.

In a recent mee

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Author: David Thomas

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