De-Dollarization Neither 'Quick' Nor 'Easy,' But May Succeed 'in Future': Expert

Speaking on the sidelines of the Eastern Economic Forum (EEF), Carlos Tabunda noted that de-dollarization has become the buzzword of late, amid the tectonic shifts taking place in the global economic order.

Participants of Russia's eighth Eastern Economic Forum (EEF), hosted in the city of Vladivostok from September 10–13, have similarly been weighing in on the prospects of cutting back global reliance on the greenback, Sputnik reported.

Many countries remain tightly linked to the American greenback, said the Philippine expert, which explains why the de-dollarization process is still a “big challenge”.

China and Russia, along with other nations spearheading the de-dollarization process, “still have a long way to go” before reliance on the greenback can be toppled, Tabunda continued.

Ways to sidestep the dollar and Western-dominated financial institutions via expanded trade in local currencies have been among the key items on the agenda of last month's three-day summit of the BRICS group of major emerging economies - Brazil, Russia, India, China and South Africa - which wrapped up on August 24 in Johannesburg.

The gathering ended with an announced expansion, with Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates invited to join the club. At the event, BRICS stressed the importance of encouraging the use of local currencies in international trade and financial transactions between members of the group as well as their trading partners.

This shift from dollar use took on a new significance amid expanded weaponization of the major reserve currency by Washington in order to achieve its geopolitical objectives. Furthermore, the dollar’s increasingly perilous global position amid prospects of a recession in the United States has also fueled the dollar-ditching debate.