The global de-dollarization move is gaining momentum and seems unstoppable now, with more Latin American countries including Venezuela and Argentina joining the trend lately.
Brazilian President Luiz Inacio Lula da Silva called for the abandonment of the dollar in international trade and creation of alternatives to the American currency, including for settlements between the BRICS members (Brazil, Russia, India, China and South Africa).
“Everyone knows that I am in favor of creating our own currency for trade between our countries. Why should we use the dollar in trade with Argentina or China, when it is possible to do this in our currencies? Why countries in which almost half of humanity lives cannot discuss it among themselves?” he said at a meeting with foreign media.
Venezuelan President Nicolas Maduro said on Tuesday that his country will move forward on the path of ditching the dollar in economic transactions, pan-Arab al-Mayadeen TV reported. They fret the US may impose sanctions on them if there emerge discrepancies with the US interests, Wu said, noting that de-dollarization will help them prevent such risks.
Irresponsible US monetary policy has time and again caused negative spillovers to developing countries, including the 2008 sub-prime loan debacle in US which caused a global financial crisis, the Fed’s ultra-loose monetary policy after the outbreak of the pandemic in 2020, and the Fed’s radical financial tightening, have all hurt other economies severely.
