South American nations are considering a shift away from dependence on the US dollar toward stronger use of their own national currencies. This perspective was voiced by Bolivian President Luis Arce during the opening of the South American Common Market summit, where leaders gathered to discuss regional economic dynamics, as reported by the television network Telesur.
Arce argued that the regional economy is constrained by the rules and practices of the US financial system, which he says tighten access to funding and hinder participation in broader international markets. He urged nations to reduce their exposure to the dollar and to broaden economic partnerships with neighbors, regional blocs, and other global partners. The emphasis, he noted, should be on building a diversified monetary framework that strengthens resilience against external shocks and creates room for more autonomous financial decisions.
The Bolivian president highlighted that the issue is not merely about shifting away from a single currency. He pointed to the vast mineral resources of South America and argued that the region’s wealth is often leveraged by larger powers that reap the benefits without proportionate returns. In his view, a more balanced approach to trade and investment would come from reinforcing regional capacity to produce, finance, and trade using currencies that reflect local economies and development needs.
In this context, Arce urged careful attention to the BRICS alliance and other blocs that are exploring pathways to reform the global economic order. The goal, he suggested, is to foster a multipolar financial architecture that can better accommodate the diverse interests of developing regions while maintaining openness to legitimate international commerce. The transition, he noted, would require practical steps, such as strengthening cross-border payment systems, increasing currency swap arrangements, and promoting regional liquidity facilities to reduce volatility and dependence on external currencies.
Later, on June 22, a researcher from Yale University in the United States noted developments in currency strategy. The scholar pointed out that China has made substantial progress in reducing its own reliance on the US dollar through policy measures and currency diversification. Yet the expert cautioned that the complete replacement of the dollar in international markets remains distant, given the dollar’s entrenched role in global trade, reserve holdings, and financial markets. The assessment underscores that while progress is being made, a full transition would involve complex structural shifts across multiple economies and financial systems.
These discussions come amid broader critiques of the dollar’s status as the dominant global currency. Observers emphasize that shifts in currency usage can influence trade terms, inflation dynamics, and monetary sovereignty for countries in the Americas. The dialogue underscores the interplay between regional integration efforts and the broader quest for monetary autonomy, highlighting both the opportunities and the challenges inherent in reconfiguring established financial norms. Stakeholders stress the importance of coordinated regional policies, transparent governance, and sound macroeconomic fundamentals as essential ingredients for any credible move toward greater monetary diversification and resilience.