de-dollarisation

De-dollarisation refers to the global trend of reducing the dominance of the US dollar in international trade, finance, and as a reserve currency. This concept is gaining traction as countries, notably China and Russia, actively seek alternatives. Recent developments highlight this push: China's central bank has been consistently increasing its gold reserves for 20 consecutive months, a strategy often seen as a move away from dollar-denominated assets. Simultaneously, China and Russia have made significant strides in settling bilateral trade in their own currencies, aiming to bypass the dollar. However, these efforts are not without challenges. Chinese banks are reportedly experiencing payment frictions due to careful management of their exposure to US sanctions, indicating the complexities and potential limitations of de-dollarisation. The ongoing pursuit of alternative financial arrangements underscores a broader geopolitical shift and a desire among some nations to diversify away from US financial influence.