There has been a lot of talk of de-dollarisation in the context of countries moving away from the use of the dollar for cross-border transactions and settlement. This concept had been spoken of for quite some time now but came actively to the discussion table when the USA put an embargo on all treasury assets held by Russia following the war with Ukraine. The question was that if the US could do it with Russia, the same can be done with any other country. And considering that almost 57% of the world forex assets are held in dollars, there was a need for diversification. This would mean de-dollarisation. In parallel, countries could be using another currency to settle trade transactions as this process caught on.

While this is an idea worth discussing, it has been observed that the USA holds a position of primacy in the world economy. When the president imposed tariffs last year on Liberation Day, it was widely accepted by all countries, which went back to negotiating deals with the USA. While the rudimentary game theory would have proposed that all nations unite against the USA, the EU, England, and Japan, among others, went on immediately to strike deals. It was a clear win situation for the USA, which got better deals on its exports to these countries besides earning higher revenue on imports, which had a minimum threshold rate of 10%. All these countries have the US as their major export partner, with........

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