The de-dollarization agenda is advancing globally as like-minded countries are settling trade in local currencies and not the US dollar. In the latest, Russia and Kazakhstan mutually paid 80% of their trade in national currencies sidelining the US dollar. The development has strengthened ties between the two neighboring countries and are now aiming to continue the process. The move will add strain on the US dollar’s prospects as nations sideline it for cross-border transactions.

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Read here to know how many sectors in the US will be affected if the de-dollarization agenda grows stronger globally. The USD could lose out on the global supply and demand mechanism in the currency markets. If the demand for the USD dips, the American economy could face inflation where the costs of daily essentials could skyrocket.

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De-Dollarization: Russia & Kazakhstan Settle 80% of Trade in Local Currencies, Not the US Dollar

Russia and Kazakhstan have already settled 80% of trade in local currencies and not the US dollar. The move will soon pave the way for other countries to follow suit and initiate de-dollarization initiatives. Russian President Vladimir Putin confirmed the transactions and indicated that the ongoing deals are just the beginning. If the de-dollarization trend is not stopped, the US dollar could be on the losing path in the next few decades and eventually begin to decline in value.

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“The problem is and partly remains but we have already transferred more than 80% of all settlements to national currencies. From my point of view, everything should be done to strengthen our ties,” said Russian President Vladimir Putin on de-dollarization. He also pointed out that around 85% of trade has already been paid in local currencies among the CIS alliance. “The use of national currencies is widening in mutual payments. Their share in commercial operations among CIS participants has already been above 85%,” said Putin.