The U.S. dollar has served as the world’s primary reserve currency since 1914, formalised under the Bretton Woods Agreement of 1944, when 44 allied nations established the framework for the modern financial order. The dollar’s dominance was anchored in the size, stability, and global reach of the U.S. economy.
However, recent geopolitical tensions, the use of sanctions as a tool of economic pressure, and concerns over U.S. monetary policies have driven several nations to diversify their trade and reserve strategies, fostering a gradual but visible shift from dollar reliance.
According to EBC, meet the 7 countries partially shifting from dollar trade allocation and reserve
1. Russia
Russia’s pivot away from the dollar was driven largely by necessity. Following sanctions imposed by the U.S. and European Union—including the freezing of over $300 billion in Russian foreign reserves and the exclusion of major Russian banks from SWIFT—Moscow accelerated efforts to de-dollarise. The country has since expanded trade settlements in rubles, yuan, and other non-dollar currencies, aligning itself with global trends promoting currency independence.
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2. China
China’s strategy is both defensive and visionary. The world’s second-largest economy aims to internationalise the yuan (renminbi) by promoting its use in global trade and finance, particularly among BRICS and Belt and Road Initiative (BRI) partners. By diversifying its reserves and reducing exposure to dollar risk, China seeks to solidify its financial influence and shield its economy from potential dollar-based sanctions.
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3. India
India’s approach centers on internationalising the rupee while safeguarding its economy from dollar volatility and sanctions-related disruptions. Past challenges—such as payment difficulties during sanctions on Iran and Russia—prompted New Delhi to adopt bilateral trade settlements in rupees. India now engages in local currency transactions with partners such as Russia, Iran, and others to enhance its trade resilience.
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4. Brazil
Brazil’s gradual shift away from the dollar is aimed at enhancing trade sovereignty and reducing its dependence on U.S. financial systems. The country is strengthening its economic ties with China and other BRICS members, advocating for local currency settlements within Latin America to enhance financial autonomy and promote regional stability.
5. Iran
For Iran, de-dollarisation has been a matter of survival. Decades of stringent U.S. sanctions pushed Tehran to develop alternative financial networks using gold, barter systems, and non-dollar currencies. The country has deepened alliances with China, Russia, and BRICS partners, positioning itself firmly within the emerging anti-dollar bloc.
6. CIS / Former Soviet States
The CIS and former Soviet states are reducing their reliance on the U.S. dollar primarily for political reasons. This shift is due to the U.S. using its currency for sanctions and political pressure. Nations want more control over their own economies and money systems. They also aim to reduce the effects of U.S. economic decisions like inflation. Countries are now using more local currencies or others like the euro and Chinese yuan. CIS countries are Belarus, Kazakhstan, Kyrgyzstan, Armenia, Azerbaijan, Moldova, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine.
7. Nigeria
Nigeria’s inclusion in this movement is motivated by the need for economic stability and foreign exchange reform. The West African nation is seeking to reduce pressure on the naira, stabilise its currency, and diversify foreign reserves. Through initiatives such as the African Continental Free Trade Area (AfCFTA), Nigeria aims to promote local currency trade, lessen dependency on the dollar, and foster sustainable economic growth.
