Over the past few years, several nations were seen coming together to bring down the dominance of the US dollar. This initiative, labeled de-dollarization, garnered immense popularity as most countries wanted to disrupt the dollar’s dependence. This included employing local currencies or other alternatives to carry out transactions, for trade, and in reserves. While the BRICS nations, which included Brazil, Russia, India, China, and South Africa, were locked in, others wanted to get on board as well. This article dives into the nation that joined in.

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Russia & Iran To Sign A Deal

Russia and Iran are expected to sign a comprehensive defense agreement that defies the West. Instead of using the US dollar to settle the defense transaction, the two nations intend to strengthen their military ties. Local currencies, rather than the US dollar, are the focal point of the majority of transactions that Russia enters into. This comes after the country was hit with sanctions by the US government. It should be noted that Iran has been floating on a similar boat. Central Bank of Iran (CBI) Governor Mohammad-Reza Farzin previously said,

“We have entered into a currency agreement with Russia and abandoned the dollar. Now we only trade in rubles and rials.”

Recent reports reveal that in order to sign the defense agreement, Iranian President Masoud Pezeshkian will go to Moscow, Russia. This will take place on January 17, 2025. Talks in the Kremlin have seen Russia and Iran refer to the deal as a “comprehensive strategic partnership.”

In addition, later this week, more information on the bilateral trade, which is expected to be valued at millions or billions of dollars, will be released. Due to the importance of local currencies like the ruble and rial, the US dollar may not be involved in the transaction.

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Can Donald Trump Stop De-Dollarization?

De-dollarization has been garnering a lot of steam as prominent nations have exhibited interest. Amidst this, Donald Trump shunned the initiative. In his efforts to sidetrack de-dollarization, Trump decided to make the whole process too expensive. The President-elect has promised to levy 100% tariffs on nations who refuse to accept the currency. Despite this, the market is divided. While some believe nations will step back a few others were not on board. They noted that this action would not significantly halt the dollar’s decline and is part of a larger tariff program that the president-elect appears committed to implementing.

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