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Trump’s Ukraine deal could trigger de-dollarization – find out how

De-dollarization trends could accelerate dramatically under Trump’s proposed peace deal with Ukraine, which includes significant territorial concessions and excludes NATO membership. Recent developments in peace talks between key advisers in Ukraine point to a complex negotiating process that could fundamentally alter global financial systems, as Trump promises to end the conflict within 24 hours of his inauguration on January 20.

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How Trump’s Ukraine Strategy Could Impact Global Financial Shifts and De-Dollarization

Trump discusses with ZelenskyTrump discusses with Zelensky
Source: Reuters

Territorial changes and money markets

territory of Ukraineterritory of Ukraine
Source: BBC

“Russia already controls all of Crimea after unilaterally wresting it from Ukraine in 2014, and has since captured about 80% of Donbass – consisting of Donetsk and Luhansk – and more than 70% of Zaporizhzhia and Kherson.” Reuters reports. These territorial concessions and new military zones could reshape global trade and push more countries to dedollarize as they watch the West’s influence shift as the conflict resolves.

NATO plans and money shifts

Trump’s advisers have made it clear that NATO membership is out of the question for Ukraine “from the table” in proposed plans. A former Trump national security official revealed that three main proposals are being considered. These include designs by Keith Kellogg, JD Vance and Richard Grenell. This strategic shift in peace talks with Ukraine could trigger widespread de-dollarization among countries seeking financial independence.

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Deal making and market effects

“Trump would only give Kiev more US weapons if it agreed to peace talks. At the same time, he would warn Moscow that he would increase US aid to Ukraine if Russia rejected the negotiations.” Sources indicate. These territorial concessions and stringent conditions could reshape international payment systems and potentially accelerate dedollarization.

Russia’s position and monetary changes

Eugene Rumer, a former top US intelligence analyst on Russia, says: “Putin is in no hurry.” The Russian leader shows no willingness to give up his conditions, including Ukraine’s abandonment of its pursuit of NATO membership. This ongoing standoff could further spur dedollarization as nations reassess their financial direction.

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Get it done

“Analysts and former national security officials express grave doubt that Trump can fulfill such a promise because the conflict is so complex.” Reuters notes. These uncertainties surrounding Ukraine’s peace talks and territorial concessions could accelerate the move away from dollar-based transactions as countries look for more stable alternatives.

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