Popular Articles
Today Week Month Year


The end of dollar dominance: BRICS and ASEAN nations forge new financial order amid DE-DOLLARIZATION surge
By Lance D Johnson // May 12, 2025

The global financial system is undergoing a seismic shift as nations increasingly reject the U.S. dollar’s stranglehold on trade and reserves. From the BRICS alliance to ASEAN economies, a quiet revolution is unfolding — one that threatens to dismantle Washington’s economic weaponization of the dollar and replace it with a multipolar monetary framework. As sanctions backfire and trust in Western financial institutions erodes, the world is turning to gold-backed currencies, regional trade settlements, and a new BRICS reserve unit — potentially spelling the end of American financial hegemony.

Key points:

  • ASEAN+3 nations have approved a yuan-based financial assistance mechanism, sidelining the dollar.
  • BRICS is finalizing a new reserve currency, the R5, backed by a basket of member currencies and possibly gold.
  • Russia and Iran are developing a gold-backed digital currency for trade, circumventing Western sanctions.
  • Major economies like China, India, and Saudi Arabia are accelerating de-dollarization efforts.
  • The petroyuan looms as Saudi Arabia considers non-dollar oil trade, threatening the petrodollar system.

The dollar’s decline: A self-inflicted crisis

For decades, the U.S. dollar reigned supreme as the world’s reserve currency, propped up by oil trade agreements and military dominance. But Washington’s reckless weaponization of the dollar — freezing Russian reserves, cutting nations off from SWIFT, and imposing unilateral sanctions — has backfired spectacularly. Now, nations are fleeing the greenback in droves.

The ASEAN+3 bloc, representing some of the fastest-growing economies, has greenlit the Chiang Mai Initiative Multilateralisation (CMIM) Rapid Financing Facility, a bailout mechanism that bypasses the dollar entirely. Instead, it relies on the yuan and regional currencies — a direct challenge to IMF-dominated financial structures.

“Financial institutions from Europe and elsewhere are increasingly pitching yuan derivatives that cut out the U.S. currency,” a Singapore-based commodities trader told Bloomberg. European carmakers are fueling demand for euro-yuan hedges, while Indonesian banks are forming dedicated teams for rupiah-yuan transactions. The message is clear: the dollar is no longer indispensable.

BRICS and the rise of the R5

While ASEAN shifts toward regional currencies, the BRICS alliance (Brazil, Russia, India, China, South Africa) is crafting something far more ambitious — a new reserve currency to rival the dollar. Sergey Glazyev, Russia’s former economic advisor, confirmed the project is nearing completion, with the R5 (or R5+) emerging as a frontrunner.

The R5 would be backed by a basket of BRICS currencies — the real, ruble, rupee, renminbi, and rand — and could expand to include the Singapore dollar and UAE dirham. Yaroslav Lissovolik, a top Sberbank analyst, notes that the R5 could evolve into a settlement and reserve tool for emerging markets, reducing reliance on Western financial systems.

But the real game-changer? Gold. Russia and Iran are developing a gold-backed digital currency for trade, rendering U.S. sanctions useless. Glazyev’s vision — dubbed Golden Ruble 3.0 — proposes pegging oil prices to gold (2 barrels per 1 gram), effectively creating a commodity-backed monetary standard.

“Fixing the price of oil in gold at the level of 2 barrels per 1g will give a second increase in the price of gold in dollars,” Glazyev wrote, echoing Credit Suisse strategist Zoltan Pozsar’s Bretton Woods III theory. The implications are staggering: if oil, gas, and minerals are traded in gold-backed currencies, the dollar’s dominance collapses overnight.

The petroyuan threat and the coming economic realignment

Saudi Arabia’s openness to non-dollar oil trade — long considered unthinkable — signals another death knell for dollar supremacy. “We will consider trading in currencies other than the U.S. dollar,” Finance Minister Mohammed al-Jadaan declared at Davos. If Riyadh shifts even a fraction of its oil sales to yuan, the petrodollar system crumbles.

Meanwhile, China and India are exploiting Western sanctions to resell discounted Russian energy at massive profits—while Europe’s industries, starved of affordable energy, relocate to Asia. “China is securing energy at discounts, not markups like Europe,” Pozsar observed, explaining why firms like BASF are shifting operations eastward.

The writing is on the wall: the Global South is uniting under a BRICS-led financial order, leaving the West isolated. As Indonesia’s president warned, nations must abandon Visa and Mastercard to avoid “geopolitical repercussions” like those imposed on Russia.

The dollar’s days as the world’s reserve currency are numbered. The only question is: How soon will the new system arrive?

Sources include:

TheCradle.co

TheCradle.co

TheCradle.co


0 Comments
Please sign in with your Brighteon account to leave comments
Learn more about our new comment system.
Sign Up

Related News
Take Action:
Support NewsTarget by linking to this article from your website.
Permalink to this article:
Copy
Embed article link:
Copy
Reprinting this article:
Non-commercial use is permitted with credit to NewsTarget.com (including a clickable link).
Please contact us for more information.
Free Email Alerts
Get independent news alerts on natural cures, food lab tests, cannabis medicine, science, robotics, drones, privacy and more.

NewsTarget.com © 2022 All Rights Reserved. All content posted on this site is commentary or opinion and is protected under Free Speech. NewsTarget.com is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. NewsTarget.com assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published on this site. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

This site uses cookies
News Target uses cookies to improve your experience on our site. By using this site, you agree to our privacy policy.
Learn More
Close
Get 100% real, uncensored news delivered straight to your inbox
You can unsubscribe at any time. Your email privacy is completely protected.