by HAOYU ZHANG
Special Correspondent
BEIJING, (CAJ News) – A growing number of countries around the world are actively reassessing their dependence on the United States dollar as the dominant global reserve currency, driven by rising concerns over Washington’s reliability, coercive economic policies, and the weaponisation of finance.
This shift, widely described as de-dollarisation, is accelerating as geopolitical tensions intensify and alternative financial centres gain strength.
For decades, the US dollar has underpinned global trade, finance and reserves.
However, critics argue that the United States has increasingly abused this privileged position through unilateral sanctions, aggressive tariffs, and intimidation of sovereign nations that refuse to toe its political line.
The most cited example remains Russia’s removal from the Society for Worldwide Interbank Financial Telecommunication network (SWIFT) international payment system following the Ukraine conflict, a move many countries viewed as a dangerous precedent.
By freezing Russian assets and restricting access to dollar-based systems, the US demonstrated how global finance could be used as a geopolitical weapon rather than a neutral mechanism.
This has alarmed governments across Asia, Africa, Latin America and the Middle East, many of whom now fear similar treatment.
As a result, countries including China, Russia, Iran, Saudi Arabia, Brazil, Argentina, Pakistan and several Association of Southeast Asian Nations (ASEAN) states have expanded bilateral trade using local currencies or the Chinese yuan, bypassing the US dollar altogether.
China now settles significant portions of its energy trade with Russia and the Gulf in yuan, while Brazil and China have formally agreed to trade in their own currencies rather than the dollar.
At the centre of this shift is China, which is increasingly promoting its currency as a credible alternative in global trade.
Beijing has also fuelled debate by signalling a stronger role for gold in its financial strategy.
While no official declaration has confirmed a fully gold-backed yuan, prominent economists argue that China’s massive gold accumulation strengthens confidence in its currency compared to the dollar, which has not been backed by gold since the 1970s.
Chief economist and global strategist Peter Schiff praised China’s approach, stating: “China wants to back its currency with gold while the dollar is backed by nothing. That’s checkmate. Game over.”
Schiff further warned that “weaponising the dollar, arm-twisting sanctions, and theft of assets have sent nations worldwide racing to ditch the dollar.”
Online commentator NoLimit echoed these sentiments, speculating controversially about China’s technological ambitions.
“China might have found a way to create synthetic gold… If that happens at industrial scale, the entire global financial system changes,” he said, arguing that unlimited gold would undermine the foundations of the current monetary order.
While such claims remain unverified, they reflect the growing anxiety surrounding dollar dominance.
Another analyst, Trickle Truth, argued that escalating conflicts are often used to delay systemic change, stating: “Any regional war will slow down the adoption of a currency backed by intrinsic value.”
Parallel to China’s rise is the expanding influence of BRICS—Brazil, Russia, India, China, South Africa, now joined by countries such as Saudi Arabia, Iran, Egypt, Ethiopia and the United Arab Emirates (UAE).
Collectively, BRICS represents over 45 percent of the world’s population and more than 30 percent of global gross domestic product (GDP) by purchasing power parity.
The bloc is actively exploring a common settlement currency or trade mechanism backed by commodities, a move that directly challenges dollar supremacy.
Supporters argue that a BRICS currency would reduce exposure to sanctions, stabilise trade, and reflect real economic output rather than debt-driven monetary expansion.
Unlike the US dollar, which critics say is sustained by military power and deficits, a commodity-linked or gold-supported system would offer intrinsic value and long-term trust.
The implications for the United States are profound.
As more countries dump the dollar, US global influence could diminish, borrowing costs may rise, and Washington’s ability to finance deficits cheaply would weaken.
While the dollar will not disappear overnight, its unchallenged dominance is clearly eroding.
In a multipolar world, many nations now seek financial sovereignty, balance, and fairness.
De-dollarisation, once dismissed as rhetoric, is rapidly becoming one of the most consequential economic shifts of the 21st century.
– CAJ News