• zephyreks@lemmy.mlM
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    1 year ago

    You’ve just described how BRICS and ASEAN have laid out plans for reducing reliance (i.e. ditching) the US dollar.

    The US dollar is currently the global reserve currency - transactions go through USD before going back to the local currency and foreign reserves of USD are extremely high. The US dollar isn’t going to be deleted from existence in these countries, but countries are laying out plans for how they will ditch the USD in its role as the global facilitator of transactions and as the primary currency in foreign exchange reserves.

    The article isn’t entirely accurate, but you’re not making an accurate claim either.

    For what it’s worth, I think this whole dedollarization drive has been driven by the US’ rather inane monetary policies during and following the COVID-19 pandemic. They’ve been very good domestically but have been extremely harmful abroad.

    • Tarte@kbin.social
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      1 year ago

      plans for reducing reliance (i.e. ditching)

      Plans for reducing reliance and ditching are two very different things.

      • zephyreks@programming.dev
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        1 year ago

        They’re ditching the USD’s role as the global reserve currency. Any reduction in reliance on the USD directly impacts the USD’s role as a reserve currency.

        You don’t have to go “I’m never touching the USD again” to ditch it in it’s key use case.