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posted ago by MatildaJ ago by MatildaJ +81 / -0

The dollar's dominance of global trade and investment flows is facing a slew of new threats as many countries push plans to boost the use of alternative currencies.#dedollarization

Nations from China and Russia to India and Brazil are pushing for settling more trade in non-dollar units – with plans ranging from the use of local currencies to a gold-backed stablecoin and a new BRICS reserve currency.

Here are five currency projects from across the world that are ultimately aimed at undermining the dollar's supremacy.

  1. Brazil and Argentina plan a common currency

Brazil and Argentina recently announced they are gearing up to launch a joint currency, named the "sur" (south), that could eventually become a euro-like project embraced by all of South America.

  1. Russia and Iran eye a gold-backed stablecoin

Russia and Iran are working together on a cryptocurrency backed by gold — a 'stablecoin' that could replace the dollar for payments in international trade.The two countries, both of which have been hit by Western sanctions, want to issue a "token of the Persian region" for use in crossborder transactions, with a plan to launch it in a special economic enclave in Astrakhan in southern Russia, which already handles Iranian shipments

  1. UAE, India look at using rupees in non-oil trade

Meanwhile, the United Arab Emirates and India have floated the idea of conducting non-oil trade in rupees. The move would build on a free trade agreement signed last year, which aims to boost trade between the two countries.

  1. China pushes for the yuan to replace the dollar in oil trades

China, for another, is looking to weaken the dollar by pushing for the yuan to replace the greenback in oil deals, given its increased trade with Russia after it invaded Ukraine.  The move looks to chip away at the petrodollar regime in place since the 1970s, where global oil transactions are largely settled in dollars. 

  1. Russia, China propose a new reserve currency

Last year, Russia and China kickstarted talks to develop a new reserve currency with other BRICS countries in a challenge to the dollar's dominance.  The new reserve unit would be based on a basket of currencies from the group's members: Brazil, Russia, India, China, and South Africa.

Original article by : Business Insider

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