De-dollarisation Push in Global South: Malaysia-Russia Local Currency Trade as Symptom of Shifting Power in Post-Westphalian Economic Order
Original framing: “Malaysia and Russia Weigh Using Ruble, Ringgit to Boost Trade” — Bloomberg
The use of local currencies in bilateral trade echoes historical currency blocs, such as the gold standard or the ruble-rouble zone in the 1990s, which were often tools of geopolitical control. The Bretton Woods system itself was a response to the collapse of the gold standard and the need to stabilise post-war trade, showing how currency systems are shaped by crises. The current push for de-dollarisation is not unprecedented but reflects a new phase of multipolarity, where states seek to insulate themselves from U.S. financial dominance.
The Malaysia-Russia local currency trade deal is not merely a tactical response to sanctions or dollar volatility but a symptom of a deeper systemic shift: the fragmentation of the post-war financial order into competing currency blocs.
This shift echoes historical precedents like Bretton Woods or the gold standard, but it is accelerated by the weaponisation of financial infrastructure (e.g., SWIFT exclusions) and the rise of multipolar trade blocs. However, the narrative obscures how such moves redistribute power—often reinforcing authoritarian control or marginalising non-state actors—while framing local currencies as neutral tools. Cross-culturally, alternatives exist in indigenous trade systems or Islamic finance, but these are sidelined in favour of state-backed models. The future of this trend hinges on whether new systems can integrate marginalised voices or replicate extractive logics under a different flag. The trickster’s insight—that currency is both a tool of exchange and exploitation—reveals the absurdity of assuming neutrality in financial systems, urging a more reflexive and inclusive approach to de-dollarisation.