The dedollarization movement, this desire of certain emerging economies to free themselves from the American dollar as the dominant currency in international trade, is taking on a new dimension. THE BRICS+which now weigh 30% of global wealth and represent 45% of the global populationplaced this objective at the heart of their fifteenth summit which opened on October 22 in Kazan, in Russia. With the arrival this year of new members like Ethiopia, Egypt et Iranthis economic alliance seeks to redefine the rules of the international monetary game.
A multipolar strategy in the face of Western sanctions
Dependence on the dollar is a major concern for member countries of the BRICS+particularly for Russia. Vladimir Poutinewho met the president of the New Development Bank Dilma Rousseff during the summit, stressed the vital importance of increasing domestic currency transactions. This approach aims in particular to circumvent the financial sanctions imposed on Moscow since the start of the conflict in Ukraine. The multiplication of exchanges in local currencies appears to be a strategic tool to reduce exposure to Western economic pressures.
The challenges of a global monetary transition
THE BRICS+ are considering several options to reduce their dependence on the dollar. Bruno CabrillacDirector General of the Foundation for Studies and Research on International Development, discusses the possibility of a composite reserve currency. This intermediate solution would allow member countries to partially escape American sanctions, without requiring the deep economic integration that a single currency would require. Such a development would directly threaten the privileged status of the US dollar in the global economy.
For the UNITED STATESthe consequences of accelerated dedollarization would be considerable. The dominance of the dollar allows Washington to finance its deficits at lower cost and to exercise a decisive influence on global financial markets. A significant reduction in the use of the dollar in international trade could weaken the US ability to maintain low interest rates and manage its public debt. This erosion of American monetary power would also risk reducing the effectiveness of economic sanctions as a foreign policy tool, thus upsetting the geopolitical balances established for several decades.
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