dollar dollarization :

 This week top officials from nine Asian countries is members of the Asian Clearing Union the ACU gathered in Tehran for their annual meeting and the center stage of discussion is de-dollarization. De- dollarization simply reducing the US Dollar’s dominance in global markets by substituting it as the primary currency for various financial transactions, this includes transactions of trading oil foreign exchange reserves and other bilateral trade agreements. In an annual meeting where officials from Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka gathered  Present at the meeting Russian Central Bank governor and officials from Belarus and from Afghanistan.

Role other countries in de-dollarization .

Russia has already given a green signal that the member countries of BRICS will discuss the creation of a new currency in fact Moscow is in Bread talks with Islamic Nations about de-dollarization. China and Russia already trading in local currencies Russia all of this are following sanctions the US has imposed sanctions on Russia and as a result, Russia is desperately looking for alternatives but going beyond that Brazil has dumped the dollar to settle trade in Yuan with Beijing  Argentina and Brazil have also discussed the creation of a common currency China meanwhile is buying gas from the UAE in Yuan Kenya has shown the dollars by settling payments in its own currency India has been settling overseas trade with several countries in the Indian rupee.

It is almost first time in decades Saudi Arabia now one of the big strategic allies for the U.S has started to trade in currencies besides the U.S dollars, which could be mean the end of the petrol dollar and if all of this is not enough as de-dollarization continues to pick up steam Iraq has joined China and Brazil  dump the U.S dollar the complete pan of use in Iraq comes within months of country saying it will do business with Chania using Yuan .

Reasons of dollar dollarization.

1. After the Ukraine war when sanctions were imposed in Russia the U.S thought it was punished in Russia but there was an unintended consequence as there so often is other countries began to worry afresh about the dominance of dollar countries freighted what would happen if they fell out with Washington what if they have sanctioned imposed on them and China was standing by China took advantage of the situation to push the case off the Yuan now in recent months the pressure on the data especially the rise in inflation and the rise in interest rate and the consequent pressure on many banks .
2. U.S. tries to reverse the U.S. Federal reserves aggressive interest rates high have hit the Global Financial systems. the real culprit in the debasement of the dollar is the long-term printing of currency by the United States those debts that are piling up the foreign exchange debt all the issues the U.S has been having for a long long period of time years not Decades of excess all of those are chickens that are now coming to roost and paradoxically as the FED Reserve now say we try to deal with we’re going to increase interest rates to deal with the present situation that has its own impact Global Financial market has been global across the planet, dollars started to flow back into the United States all of that continues to create stress.
3. A perfect storm around the dollars Banks under strain International efforts to circumvent Western sanctions the pressures inside the United States as well the wrangling over the debt crises the questions about the long-term debasement of the US dollar by the Americans themselves and China adding fuel to the de-dollarization fire as it pushes to raise the yuan’s global standing infact the dollar has fallen behind the Tuan for the first time in Chinese cross-border transactions China clearly ramping up  its efforts to disrupt the dollar trade and it’s leaving no stone unturned it’s entering into non-dollar agreements with as many countries as it possibly can as of course is Russia and in the middle of all of this not forget that there is a rise in America’s own domestic turbulence because of the debt ceiling crisis and all the other issues that we talking about collectively this has put the Dollar’s Global standing in a spot So is it the end of king Dollar not so fast because there is one crucial question and answer if not the dollar then what and there’s no good answer to that question.

dollar dollarization :