Global dedollarization is accelerating according to the Venezuelan president

Venezuelan President Nicolas Maduro recently asserted that global dedollarization is inevitable. US sanctions have been instrumental in this trend, prompting nations to seek alternatives to the dollar. This transition is gaining momentum, particularly in Africa where many countries are joining the movement.

US sanctions as a driver of dedollarization

Dedollarization is a hot topic that has attracted the interest of the media and economists lately. For a few years, the economist Charles Gave predicted the end of the supremacy of the American dollar, in his analyzes diffused on the Institute of Freedom.

This trend accelerated sharply about a year ago, following the outbreak of the conflict between Russia and Ukraine. This situation provoked immediate reprisals from the United States and Europe against Vladimir Putin and his country.

During his recent weekly update, Venezuelan President Nicolas Maduro highlighted the key role of US sanctions in the dedollarization movement.

Indeed, Maduro has underline that these sanctions acted as a real catalyst, prompting many nations to seek alternatives to the US dollar. This trend is particularly marked in Africa, where several countries are joining the dedollarization movement.

They add to the process of the inevitable dedollarization of the world. The more the world is multipolar, the more the world is multicentric. As the world moves closer to equilibrium, a basket of currencies will appear…Many alternative initiatives to the US dollar are emerging. We could say that we are beginning to experience an accelerated and sustained process of dedollarization of the commercial world, of world trade…

President Nicolas Maduro

The emergence of new initiatives

The consequences of the US diplomatic disaster are beginning to be felt, prompting countries to take steps to regain their monetary sovereignty.

In this perspective, Nicolas Maduro underlined during his presentation the emergence of new initiatives favoring a progressive dedollarization. A case in point is the recent creation of a gold-backed digital currency in Zimbabwe, providing citizens with an alternative to traditional payments and a more stable store of value.

The Venezuelan president also mentioned the BRICS economic alliance, bringing together Brazil, Russia, India, China and South Africa. These countries have recently launched a development bank (NDB) aimed at financing public and private projects.

At the same time, the BRICS are considering the creation of an alternative world currency in order to reduce their dependence on the American dollar. Such an approach would contribute to establishing a more balanced and multipolar monetary system, thus promoting greater economic stability.

Since 1946, the US dollar has long dominated world trade, particularly in the purchase of raw materials and energy. However, this undisputed supremacy is now in decline, marking a major shift in the global economic landscape. Are we at the dawn of a new era where another currency will take over the dollar?

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