Bangladesh (Commonwealth Union)_ According to reports, Bangladesh and Russia have agreed to settle payments using the Chinese yuan or RMB for a nuclear plant that Moscow is constructing in the South Asian country. This move will strengthen the act of de-dollarization that is happening worldwide. Bangladesh is working with Russia’s state-owned atomic company Rosatom to build two nuclear power plants, with the project costing $12.65 billion. And 90 percent of the project is funded by a Russian loan that can be paid off within 28 years, with a grace period of 10 years.
Many leading economies, both in industrialized nations and developing markets, are seeking to move away from the US dollar. They are innovating cross-border payment systems and settlement mechanisms, signing bilateral currency agreements, and promoting the diversification of currencies. For instance, India and Malaysia have already decided to use Indian rupees for trade settlement in South Asia, while Brazil and Argentina plan to introduce a currency union called the “sur” in order to improve trade in the region, thereby depending less on the US dollar.
Further, countries such as Russia, Iran, and Türkiye are also moving towards settlement via their own currencies. This trend of de-dollarization has also caught the attention of international media outlets. Accordingly, a popular global media report stated that, “The dollar is facing a challenge to its status on multiple fronts”. Another media outlet reported that political controversies and financial crises are the major reasons for many governments to reduce their dependence on the US dollar.
In addition, the debt accumulated by the US government has made countries prone to major financial crises, causing many nations to follow the path of “de-dollarization” in order to protect their economies from further crises. According to observer and geopolitical expert Renaud Girard, this trend of de-dollarization is an irreversible process, due to the dollar’s use as an instrument of pressure for other countries.
