Why are some countries advocating for de-dollarization?

Some countries are trying to use less US dollars because they want more control over their money and prices.

Imagine you have a lemonade stand, and every time you buy lemons, you have to pay in greenbacks (which is just a fancy name for the US dollar). One day, the price of lemons goes up because the person selling them says, "Now it's 2 greenbacks per lemon!" You didn’t get a say in that, you just had to pay more.

That’s what happens when countries use a lot of US dollars. If the value of the dollar changes, prices for things like oil or food might go up too, and they don't always tell the country using it. So some countries are saying, "We want to try using other types of money instead of just greenbacks!"

Why They Want More Control

Sometimes, when a lot of people use the same money, it can feel like one big group is making all the rules, and not everyone agrees with them.

So some countries are trying to use more of their own money or other countries’ money. This way, they might have more say in how much things cost, just like you could decide how many lemons you want to buy at your own price!

Take the quiz →

Examples

  1. A country uses the US dollar for most of its trade, but wants to use its own currency instead.
  2. Some countries are trying to pay for oil in their own money rather than dollars.
  3. Imagine you only had one type of coin to buy everything, now you want more options.

Ask a question

See also

Loading…

Discussion

Recent activity