Q. With reference to “De-dollarisation of Trade” consider the following statements::
1.It refers to the process of reducing dependence on the US dollar for international transactions and financial operations.
2.It can be achieved by using cryptocurrencies.
3.De-dollarization reduces a country’s autonomy in deciding their monetary policies.
Which of the statements given above are correct?
Answer: A
Notes:
Explanation –
Statement 1 and 2 are correct. De-dollarisation of trade refers to the process of reducing dependence on the US dollar for international transactions and financial operations. It can be achieved by using alternative currencies or assets, such as the Euro, Chinese Yuan, or even cryptocurrencies.
Statement 3 is incorrect. De-dollarization allows countries to exercise greater autonomy in their monetary policies, as they become less influenced by the US Federal Reserve’s decisions.
Source: ForumIAS
