EAEU Achieves 93% De-Dollarization in Trade, Intensifying Global Shift from US Dollar in Response to Sanctions
Russia and China have significantly advanced their economic partnership by shifting nearly all bilateral trade to their national currencies—the ruble and yuan—moving away from US dollar settlements. Building on this momentum, Russia and the Eurasian Economic Union (EAEU), which includes Belarus, Kazakhstan, Armenia, and Kyrgyzstan, have now achieved a 93% de-dollarization rate in trade transactions. Most EAEU settlements are conducted in national currencies, predominantly the ruble, with a growing share in the yuan and other regional alternatives. This strategic shift is a direct reaction to Western sanctions, aiming to reduce US dollar and euro dominance, strengthen mutual trade, and lower exposure to currency-related risks. Analysts highlight that this trend enhances the region’s resilience against US-led financial restrictions and impacts global currency markets by reducing demand for the dollar and boosting local currencies. The rising de-dollarization trend within EAEU and among BRICS countries is expected to accelerate similar moves globally, potentially altering international capital flows. These developments can influence cryptocurrency markets, given that digital assets like Bitcoin are often sensitive to global shifts in fiat currency dominance and international settlement trends.
Bullish
The rapid de-dollarization within the EAEU and deepening Russia-China cooperation signal a weakening of US dollar dominance in international trade. This shift increases global interest in alternative settlement instruments, including cryptocurrencies like Bitcoin, especially for entities seeking alternatives to traditional fiat systems. Demand for crypto assets typically rises when there is uncertainty or structural change in global currency reserves and settlement mechanisms. The trend could support higher adoption and serve as a hedge against fiat currency risks, which is historically associated with upward price pressure on major cryptocurrencies—particularly during periods of pronounced geopolitical and macroeconomic tension.