Meaning: The quote "Why should we use the Dollar even when we trade among ourselves?" by Abu Bashir Activist is a thought-provoking query that raises important questions about the dominance of the US dollar in global trade and its impact on countries and individuals outside of the United States. In this quote, Abu Bashir Activist challenges the prevailing practice of using the US dollar as the default currency for international trade, even when the transactions do not involve the United States. This raises concerns about the implications of dollar hegemony and prompts a critical examination of the economic and geopolitical consequences of such a system.

The use of the US dollar as the primary currency for international trade dates back to the Bretton Woods Agreement of 1944, which established the dollar as the global reserve currency. This arrangement was further solidified with the collapse of the Bretton Woods system in the early 1970s, leading to the widespread adoption of the dollar as the preferred medium of exchange and store of value in the international arena. As a result, many countries conduct their trade and hold their foreign exchange reserves in US dollars, giving the United States significant influence over global financial markets and trade dynamics.

Abu Bashir Activist's question challenges the conventional wisdom that underpins the dollar-centric global financial system. It highlights the asymmetry of power and privilege that comes with the dollar's status as the world's primary reserve currency. By using the US dollar in international trade, even when the parties involved are not US-based, countries are effectively subjecting themselves to the monetary policies and economic conditions of the United States. This can have far-reaching implications for the autonomy and economic sovereignty of nations, as their financial well-being becomes increasingly intertwined with the policies and actions of the US Federal Reserve and the US government.

Furthermore, the reliance on the US dollar in international trade can also lead to increased transaction costs and exchange rate risks for countries outside the United States. This is particularly relevant for developing economies and emerging markets that may struggle with currency volatility and the need to hold significant dollar reserves to facilitate trade and finance their external obligations. Abu Bashir Activist's question draws attention to the potential inefficiencies and vulnerabilities associated with the current dollar-dominated international monetary system, prompting a reevaluation of its merits and drawbacks.

Moreover, the use of the US dollar as the primary currency for international trade has implications for global economic imbalances and financial stability. The dollar's role as the world's reserve currency has allowed the United States to run persistent trade deficits and accumulate substantial external debt, as other countries are willing to hold and use dollars for their international transactions. This has contributed to a situation where the United States enjoys certain privileges, such as the ability to borrow in its own currency and finance its debt at relatively low interest rates, while other countries may face constraints and vulnerabilities due to their reliance on the dollar.

In recent years, there have been discussions about the potential for alternative arrangements that could reduce the dominance of the US dollar in global trade and finance. Some countries and international organizations have explored the use of alternative reserve currencies, such as the euro, Chinese yuan, or digital currencies like Bitcoin, as a means to diversify away from the dollar and reduce their exposure to US monetary policy and financial risks. These efforts reflect a growing recognition of the need to rebalance the international monetary system and mitigate the concentration of power associated with the dollar's supremacy.

In conclusion, Abu Bashir Activist's quote "Why should we use the Dollar even when we trade among ourselves?" raises important questions about the implications of the dollar-dominated global financial system and prompts a critical examination of its impact on countries and individuals outside the United States. It challenges the prevailing practices and assumptions that underpin the international monetary system, encouraging a reevaluation of the benefits and drawbacks of the current arrangement. By provoking thoughtful discussions and debates, this quote contributes to a deeper understanding of the complexities and challenges associated with the role of the US dollar in international trade and finance.