The Dollar Is Slipping and Nobody's Sounding the Alarm

The Dollar Is Slipping and Nobody's Sounding the Alarm

How One Trade Between Brazil and China Opened the Door to the Next Global Financial Power Shift

In August 2023, a trade went through between Brazil and China that barely made a blip in the news. But it was a big deal.

Brazil’s Eldorado Brasil shipped 43 containers of pulp to a Chinese buyer. The Chinese paid in renminbi. Eldorado received the money in Brazilian reais. No U.S. dollars changed hands.

This was the first time in China-Brazil trade history that the dollar was completely bypassed.

The transaction looked simple. But it marked a shift in how major economies are choosing to do business. Quietly, more countries are working to move trade away from the dollar. The reasons behind it are economic, not political. But the implications are massive.

Think about how strange this is. If a company in Zambia wants to buy something from Kenya, it has to convert local currency into U.S. dollars, then back into Kenyan shillings. This comes with high fees, delays, and unnecessary complexity.

Now, countries are asking why this system still exists.

And they’re doing something about it.

BRICS countries are leading the charge. They’re not talking about it. They’re acting on it. According to Russian officials, more than 65 percent of trade within BRICS is now handled in non-dollar currencies.

Ten years ago, the dollar dominated that space. Today, it’s losing ground.

Africa is moving in the same direction. The Pan-African Payment and Settlement System (PAPSS) now allows cross-border payments between African countries in their local currencies. This change can save African nations as much as $5 billion a year in lost currency fees.

It also speeds up settlement times. Instead of waiting days or weeks for a payment to clear through U.S. or European banks, a company in Kenya can pay a supplier in Ghana almost instantly.

The impact on cash flow, trade volume, and local economies is significant.

Why Countries Are Breaking Away Now