The dollar says goodbye: every transaction and the use of banknotes are banned in 11 countries

The U.S. dollar is no longer the predominant currency for international transactions in 11 nations. The leaders of these nations have chosen to abandon their use in commercial transactions to redefine the value of their own currencies, reduce dependence on the dollar, and boost their competitiveness in foreign exchange markets.

These are the countries that are part of the Commonwealth of Independent States (CIS). This trend, known as “de-dollarization,” has gained momentum after the sanctions imposed by the United States on Russia in 2022. All countries that begin to adopt this stance could alter the global economic balance.

The dollar says goodbye: the countries that have renounced the U.S. currency

Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine, countries that make up the Commonwealth of Independent States (CIS), have begun to reduce the use of the dollar as a currency for cross-border transactions.

With 85% of cross-border transactions carried out in local currencies, CIS leaders have indicated that this decision strengthens the economic sovereignty of their nations and provides new fiscal opportunities.

The goal of reducing the dollar’s presence in major transactions is:

Russian President Vladimir Putin had stated that “the use of national currencies in mutual payments is expanding. Their share in trade transactions among CIS members already exceeds 85%.”

How does de-dollarization affect international trade?

De-dollarization represents a significant shift in the global financial system. By reducing dependence on the dollar, CIS countries could reduce the influence of the United States in the global economy. Create new markets based on local currencies. Generate greater stability for their economies in the face of dollar fluctuations.

This process can also lead to negative consequences for the dollar. If demand for the currency in international transactions decreases, its value could suffer, which in turn could affect its role as the predominant reserve currency on the global stage.

As more emerging economies follow this same trend, the U.S. currency could gradually lose relevance in the coming years, giving rise to a global context in which local currencies take on a central role, in contrast to the dollar’s traditional supremacy.