Bangladeshi media: Unpopular weaponization of the US dollar, "de dollarization" process continues to advance, country | US dollar | process
On June 15th, Overseas Net reported that a recent review article in Bangladesh's Financial Express analyzed that due to concerns about the weaponization of the US dollar and doubts about the development prospects of the US dollar, many countries are promoting the process of "de dollarization", and Bangladesh is also focusing on reducing its dependence on the US dollar.
The article argues that thanks to the strong position of the US dollar in the world, the United States can have an exceptionally significant impact on other economies. Nowadays, the negative impact of US dollar hegemony is becoming increasingly prominent, and the weaponization of the US dollar is an example. In history, the United States has weaponized the US dollar multiple times to punish its competitors. For example, the United States has twice kicked Iran out of the Global Banking and Financial Telecommunication Association system, and also removed major Russian banks from the system, freezing Russia's $300 billion foreign exchange reserves.
The article states that due to the United States continuously using the US dollar as a weapon to sanction and suppress other countries, many countries, including many US allies, are considering adopting a new payment system to accelerate the process of "de dollarization" and reduce dependence on the US dollar. The analysis of the article suggests that the continued trend of "de dollarization" is due to the weaponization of the US dollar. At the same time, many countries have gradually realized that relying on a single dominant currency can lead to geopolitical risks, cyclical liquidity risks, and inflation crises, and therefore no longer trust the US dollar.
The article argues that the BRICS countries have played a leading role in promoting "de dollarization" and promoting new settlement currencies. The latest report shows that 25 countries around the world are preparing to join the BRICS countries and abandon the US dollar in international trade, adopting other currencies. This trend highlights that in a multipolar world, the US dollar is losing its dominant position.
The article also analyzes the situation and response strategies of Bangladesh in the process of de dollarization. Affected by the Russia-Ukraine conflict, inflation, energy and food shortages and other factors, Bangladesh is facing pressure on foreign exchange reserves. Therefore, it is in Bangladesh's interests to carry out international trade in local currency.
In April, Bangladesh and Russia agreed to use Chinese yuan to pay for Russia's construction of a nuclear power plant project in the country, which is worth 12.65 billion US dollars. At the same time, given the rapid increase in acceptance of the renminbi in the international market, the Bank of Bangladesh is also continuously increasing the renminbi's share in its foreign exchange reserves and reducing its share in the US dollar.