Category: World Current Affairs | Last updated: 2026-09-18

The term 'de-dollarization' refers to the efforts by some countries to reduce their reliance on the US Dollar for international trade, reserves, and financial transactions. What is a key motivation for countries to pursue such a strategy?

A) To increase their dependence on the US financial system for stability.
B) To promote the US Dollar as the sole global reserve currency through diversification.
C) To enhance their monetary sovereignty and reduce vulnerability to US sanctions or economic policies.
D) To exclusively adopt the Euro as their national currency for all domestic transactions.

Explanation

Countries pursue de-dollarization primarily to gain greater control over their economic policies, reduce exposure to US interest rate changes, and mitigate the risk of being affected by US financial sanctions or foreign policy decisions, thereby enhancing their monetary sovereignty.

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