21. Political Signals: Why Are Some Countries Abandoning the Dollar in Their Foreign Trade?
- Author:
- FARAS
- Publication Date:
- 10-2018
- Content Type:
- Commentary and Analysis
- Institution:
- Future for Advanced Research and Studies (FARAS)
- Abstract:
- Several Middle Eastern countries, such as Turkey and Iran, have been recently shifting into international currencies or local currencies, instead of the US dollar, in their foreign trade. This shift comes amid the US economic sanctions on Iran in tandem with its souring relations with Turkey. What is striking in this regard is that there is an international acceptance of other currencies, especially the Chinese yuan, with the pricing of some oil contracts in the same currency. This move seems to have a particular political significance, namely rejecting the impact of the US dollar on the trade of these countries rather than its economic feasibility, amid the sharp fluctuations in the local currencies of Iran, Turkey, and India in the past period.
- Topic:
- Economics, International Trade and Finance, Currency, and Trade Policy
- Political Geography:
- Russia, China, Iran, Eurasia, Middle East, North America, and United States of America