ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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BRICS De-dollarisation

Essential for an Equitable World Economic Order

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There is a very good reason why the dollar is used widely in trade, and that’s because we have deep, liquid, open capital markets, rule of law and long and deep financial instruments …. Sanctions are only imposed on countries that are guilty of enormous abuses, including human rights abuses.

—Janet Yellen, US Treasury Secretary

The active use of the United States’ (US) dollar facilitated by the post-World War financial system is promoted by the size of the US’s economy, the largest and most liquid market for financial instruments, political influence, and the role of US multinational companies in global markets. However, the aftermath of the Ukraine conflict and the unprecedented sanctions on the Russian economy have seen a move towards de-dollarisation and trading in national currencies/barter trade (Bhagwat 2022). Despite the existence of Article 21 of the 2004 “UN Convention on Jurisdictional Immunities of States and Their Property,” which guarantees the immunity of central bank assets (UN 2004), neither Russia nor other countries (Iran, Venezuela, North Korea, Afghanistan, Cuba) alleged to be operating inimically to US interests have been protected from having their assets being blocked, another example of the selective application of the “rule of law.”

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Updated On : 28th Aug, 2023
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