De-dollarization gains momentum as Russia and Belarus conduct 98.8% of their trade without the U.S. dollar, triggering major economic shifts that challenge Western financial dominance and heighten global market volatility.
Russia and Belarus Achieve Remarkable 98.8% Transition to National Currencies in Trade
The global shift toward de-dollarization continues to accelerate, with more nations aiming to lessen their dependence on the U.S. dollar in international trade. Highlighting this trend, Russian Deputy Prime Minister Alexei Overchuk announced at the St. Petersburg International Economic Forum (SPIEF) on June 19 that Russia and Belarus are nearing full adoption of national currencies for bilateral transactions. Overchuk remarked:
We are increasing the share of mutual payments in national currencies. According to our data, it totaled 98.8% in the first quarter of 2025. In other words, it can be said that we have completely shifted to mutual payments in national currencies.
The Russian official also emphasized the substantial growth in trade between Russia and Belarus. Speaking during a roundtable at the SPIEF, he noted: “Our countries are demonstrating robust growth in mutual trade. Over the past five years, trade turnover has risen from $35 billion to nearly $51 billion. In the first quarter of 2025 alone, we recorded a 3% increase compared to the same period last year. For Belarus, Russia remains its primary trading partner, and this relationship holds special significance.”
While some analysts view the de-dollarization efforts of Russia and Belarus as a means to shield their economies from external financial shocks and enhance monetary sovereignty, others warn that such a move could restrict access to global financial markets and complicate trade beyond their bilateral framework. Advocates argue, however, that the policy strengthens economic cooperation between the two nations, promoting deeper integration and financial autonomy within the Eurasian region.
This trend extends beyond Russia and Belarus. Countries within alliances such as BRICS, the Shanghai Cooperation Organization (SCO), and ASEAN are increasingly conducting trade in local currencies to reduce their dependence on the U.S. dollar. Reliance on the dollar exposes economies to sanctions, exchange rate fluctuations, and the effects of U.S. monetary policy. In response, China is promoting yuan-based trade, while nations like India, Malaysia, Turkey, Argentina, and Zimbabwe are expanding bilateral currency agreements. Together, these shifts represent a growing global movement toward monetary sovereignty and financial resilience in an increasingly uncertain geopolitical landscape.
