The global trend of de-dollarization is gaining momentum as more countries are opting to move away from the US dollar in international trade. The latest countries to officially ditch the greenback are Iran and Russia, both of which are part of the BRICS bloc of nations. This move is seen as a significant step in the global de-dollarization movement, which has been spearheaded by BRICS nations.

According to Mohammad Reza Farzin, a representative from Iran, both Iran and Russia have entered into a currency agreement and have fully removed the US dollar from their trade transactions. They now exclusively use their national currencies, the ruble and the rial, for trade between the two countries. This decision comes as both nations face severe sanctions from Western countries, making it increasingly difficult to use the US dollar for trade.

In July 2024, the central banks of Russia and Iran agreed to a currency swap policy, further solidifying their commitment to de-dollarization. Additionally, both countries have integrated the Mir payment system as an alternative to SWIFT, the global financial messaging system. Russia has even allowed Iranian nationals to withdraw rials from ATMs, further pushing the de-dollarization trend.

Despite the growing de-dollarization movement, the US dollar continues to dominate global finances. According to a report by Statista, the US dollar accounts for 88.4% of foreign exchange transaction volume and makes up 59% of official foreign exchange reserves. While the de-dollarization movement is gaining traction, it is unlikely that the greenback will be replaced anytime soon.

Some analysts believe that President-elect Donald Trump’s pro-business stance could potentially rejuvenate the strength of the US dollar. However, the continued efforts of countries like Iran and Russia to move away from the dollar in international trade indicate a shift in the global financial landscape. The future of the US dollar as the dominant global currency remains uncertain as the de-dollarization movement continues to grow.