Ignacio Teson•Wednesday, January 29, 2025•1 min read
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The de-dollarization of the CIS (Asia) marks a turning point in the global financial system, challenging the dominance of the U.S. dollar and solidifying the rise of local currencies in international trade.
The dollar faces an unprecedented challenge as 11 countries have decided to eliminate its use in international transactions. These nations, all members of the Commonwealth of Independent States (CIS), are shifting toward strengthening their local currencies to reduce reliance on the dollar and enhance their competitiveness in the foreign exchange market.
This shift is part of a broader global trend known as “de-dollarization,” which gained momentum after economic sanctions were imposed on Russia in 2022. Beyond political considerations, this movement aims to secure greater financial autonomy and reshape the international economic system.
Currently, over 85% of transactions among CIS countries are conducted in their own currencies, a strategy their leaders view as essential for reinforcing economic sovereignty and expanding financial opportunities.
Countries Dropping the Dollar
The countries driving this initiative include Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine. Despite tensions between Russia and Ukraine, most of these nations maintain strong economic ties and are collectively moving toward a financial system less dependent on the dollar.
The decision stems from both political and economic motivations, with three key factors at play: strengthening their currencies in the global market, shielding themselves from sanctions and foreign-imposed restrictions, and diversifying their reserves by incorporating assets such as gold.
Russian President Vladimir Putin has endorsed this strategy, emphasizing that “the use of national currencies in mutual payments is constantly growing, with their share already exceeding 85% in trade among CIS countries.”
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
