The dollar is losing strength, it’s not a theory, nor is it a rumour. Eleven countries have officially announced that they will stop using the U.S. currency in their transactions starting in 2025, and this news comes just as the country is going through one of the most complicated economic moments in recent years.
The goal is clear: to strengthen their own economies, reduce the influence of the United States, and start operating with their own currencies. And although it’s not an immediate goodbye or the end of the world, it does mark the beginning of the end of the dollar’s hegemony as the global currency.
The dollar no longer rules like it used to
For decades, the dollar has been the undisputed king of international trade. Since World War II, there was no currency that came close. Black gold, raw materials, international reserves… everything revolved around the green bill, which ended up consolidating itself as the main international reserve currency (basically, all countries used it to back up their economies). Until now.
80% of global trade is still done in dollars, but there are already clear signs that this dominance is starting to crack. And it’s not alarmist media saying it, it’s people like Joyce Chang, global research chair at JP Morgan: the dollar may hold on for a few more decades, but its power is not what it once was, it seems the currency is starting to weaken.
Who is getting off the dollar train?
The countries that have made this decision belong to the Commonwealth of Independent States (CIS), mostly made up of republics that were part of the former Soviet Union:
- Armenia
- Azerbaijan
- Belarus
- Kazakhstan
- Kyrgyzstan
- Moldova
- Russia
- Tajikistan
- Turkmenistan
- Uzbekistan
- Ukraine
Yes, even Ukraine is on the list, despite its open conflict with Russia for more than three years. Even if it seems strange that Ukraine and Russia could agree on this, here geoeconomic logic prevails: they no longer want to depend on Washington to move their money.
Why now?
Because of a mix of political, strategic, and technological reasons. These countries have been watching for years how Russia has been reducing its use of the dollar, and they have decided to follow in its footsteps.
Also, they now have the tools to do so: digital currencies, bilateral agreements, alternative payment platforms and a long etcetera… And in a context where everyone is trying to protect what’s theirs, the idea of leaving the dollar behind starts to sound less risky and much more necessary.
What changes with this decision?
The measure doesn’t just affect currencies. It’s a statement of intent. Stopping the use of the dollar means stopping playing by the rules imposed by the United States. It means being able to negotiate on your own terms, close deals without going through American banks, and reduce the impact of possible sanctions.
On the other hand, it’s also a way to try to shield themselves from potential external crises that may arise… I’m not sure if we’re explaining this well. If the currency you use doesn’t depend on another country, it’s easier to control the side effects when things get shaky elsewhere.
And how will they apply it?
Little by little. No one is going to eliminate the dollar overnight. But the plan is already underway and the transition will be done progressively. The financial institutions of these countries are already working to adapt their systems, and international trade will start to be done in local currencies.
There’s still no official date marked on the calendar, but everything points to mid-2025, following the same model that Russia implemented in its day.
Does this affect citizens?
Yes, but not immediately. What citizens will see is that their banks, their companies, and their governments will start operating with their local currency for imports, exports, and international agreements. In principle, the dollar will still circulate, but it will have less and less weight in the daily life of these places.
That said, in the long term, it could mean a complete transformation of the financial system of these countries. More independence, but also more responsibility. The decision of these eleven countries is not going to bring down the dollar tomorrow. But it is a warning. The world is changing its rules and the economic dominance is no longer ours.
The dollar is still strong, no one doubts that for now, but its crown is starting to shake. And when a bloc of eleven countries decides to move in a different direction, the least we can do is pay attention. Because we might be witnessing the beginning of a new stage. And this time, without dollars involved
