Goodbye to the dollar: These countries ban its use and all transactions with banknotes.

U.S. dollar
U.S. dollar

The United States is located in the center of media attention. This is not in vain. The tariff policy promoted by Donald Trump and his efforts to end the conflict between Ukraine and Russia with a very particular way of mediating, he makes the world pay attention.

As progress is made towards what could be a possible ceasefire after years of fighting, international markets slow down and prepare to face the economic repercussions that these situations could bring.

La political uncertainty has led the United States to what has been called "the tariff war", the conflicts between Russia and Ukraine and between Israel and Hamas have caused Some countries decide to restrict the use of the US dollar in order to strengthen their own economies. Although Putin and Trump pose as friends for the photoSince 2022, Russia has banned transactions with this currency, and following Joe Biden's departure, this situation has not changed, nor have there been any statements about possible modifications to the measure.

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In Europe, More and more countries are joining the trend of limiting the use of the dollar. in commercial and financial operations. The idea is to reduce dependence on this currency and foster the growth of their national economies with a view to strengthening the continent.

This movement towards less dollarization of the European and global economy is also driven by China's growing influence as an economic power which not only dominates the East, but has been penetrating the West for years. The Chinese yuan has gained ground as a currency used in international agreements, allowing many countries to compete with lower costs and consolidating its position in the global economic landscape.

Although it may seem contradictory given the current situation, with Donald Trump trying to mediate peace between Ukraine and RussiaUnder Vladimir Putin's leadership, the latter nation was the first to ban the use of the US dollar. This occurred in 2022, in response to international sanctions imposed following the invasion of Ukraine. Moscow has proposed strengthening an economy weakened by the breakdown of agreements. with Western powers. Consequently, the Kremlin promoted the use of the ruble as the primary currency in its international agreements during the conflict.

He acted in a similar way Belarus and decided to ban the dollar, prioritizing the use of the ruble and the yuan. Meanwhile, other countries, including Serbia, Hungary and Türkiye, They have restricted transactions made in US dollars. The intention is to strengthen their own economies.

La Commonwealth of Independent States (CIS), continental organization composed of nations that were part of the former Soviet Union such as Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Turkmenistan and Uzbekistan, They also chose to abandon the dollar in favor of other currencies.

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The yuan replaces the dollar

In 2021, the system of the Federal Reserve of the United States United reported that the dollar was somehow involved in approximately 80% of world tradeThis, according to the report, represented 60% of international reserves. However, in recent years, the US currency has been losing relevance against the yuan. Economic experts have even claimed that as a slogan that seems like a marketing slogan that “the yuan is the new dollar.”

Added to de-dollarization is IranMohammad Reza Farzin, governor of the country's Central Bank, recently noted that they have stopped using the dollar in their financial transactions: “We have signed a monetary agreement with Russia and completely eliminated the dollar. From now on, we will only use the ruble and the rial."He said.

Trump vs. the BRICS

It's not easy to keep up with Donald Trump.. Three months after his arrival in Washington, he has announced many measures he plans to take in the economic sphere. Among all of them, there will be repercussions for the BRICS countries who decide to distance themselves from the US dollar.

On his social media accounts, which he often uses to issue executive measures, he expressed that the idea of ​​allowing these nations to move away from the dollar without taking action is over. He declared that will demand a commitment from these States not to create a new currency in a common market, nor to support another that could replace the dollar, and warned that, if they do not comply, they will face tariffs of 100 % and will lose access to the US market.

Meanwhile The dollar has not completely lost its prominence as the most important currency globally., still maintaining its strength. However, Trump's economic strategy, riddled with measures and countermeasures, could include a devaluation of the dollar to increase the competitiveness of United States in the international marketThis could be key to revitalizing the country's economy and reaffirming its global leadership.

At the same time, various countries, especially in Europe, are taking measures to limit the use of the dollar and promote the yuan as the primary global currency in the coming years. However, the success of these initiatives will depend largely on the White House's ability to maintain the economic hegemony of the United States.