Finance

De-dollarization

Definition

The process of reducing dependence on the US dollar in international trade, reserves, and financial transactions.

Explanation

BRICS nations, particularly China and Russia, are promoting alternatives to dollar-denominated trade — using yuan, rupee, or local currencies. The dollar still dominates (~58% of reserves, ~88% of forex trades), but its share has declined from 70%+ in 2000. Full de-dollarization faces enormous structural barriers.