Using the Dollarization theory, this paper attempts to identify the determinants of currency substitution degree in Iran and Argentina. Despite the reduction in the volume of the dollar in some years, the trend of currency substitution has been increasing.This Paper examines Dollarization phenomenon in Iran and Argentina's economy through estimating the Volume of Dollars and Degree of Currency Substitution. The results imply that Dollarization in Iran and Argentina is one-way.  

Using the currency substitution theory, this paper attempts to identify the determinants of currency substitution degree in Iran and Canada. Despite the reduction in the volume of dollar in some years, the trend of currency substitution has been increasing. This Paper examines Currency Substitution phenomenon in Iran's economy and Canada's economies through estimating domestic and foreign money demand over period 1959-2004.The result implies that Currency Substitution in Iran is one-way and in Canada it is two-way. In this Paper two functions of demand for domestic and foreign currency for Iran and Canada were estimated. By estimating these functions for the period of 1338-1384, the existence of currency substitution phenomenon in Iran was examined and approved.

Iranian economy in recent years has experienced several currency shocks; on the other hand, slight changes in dollarization would cause huge exchange rate movements. In this paper, using "Autoregressive Distributed Lag Method" (ARDL), the money demand function is estimated to check the dollarization of the Iranian economy. Then, the volume of "Foreign Currency Deposits" (FCD) in the banking system, using Kamin and Erickson (2003) method has calculated and we get to dollarization index. The results show that the Iranian economy is dollarized and the dollarization Index in 1390 and 1391 is respectively 0.77 and 0.81.

Economic instability affects the domestic money that economic agents are willing to hold. For example in an uncertain inflationary environment, they prefer to less demand for money and use those asset which has less risk of maintenance, such as foreign currency and foreign assets. The use of foreign currency as a store of value is "dollarization". This study examines the impact of economic instability on the unofficial dollarization in Iran. For this purpose, we estimate the degree of dollarization by Kamin and Ericsson (2003) and El-Erian (1988) method, then obtain a composite macroeconomic instability index with the consumer price index, exchange rate, stock of international reserves, interest rate and budget deficit, then examine by using a vector auto regression model over the period of 1979 to 2014. The results indicate that economic instability affects dollarization positively. The impulse response function shows that a one-standard error shock in instability increases dollarization at first, and gradually reduced. The results of variance decomposition also show that in long term instability index can explain fluctuation of the dollarization.

Extended AbstractIntroduction: The fluctuations caused by the depreciation of the dollar along with the imposition of sanctions against countries using the power of the dollar have caused other countries to seek to reduce dependence on the dollar— a process known as de-dollarization. This is especially important for the People's Republic of China for two reasons: on the one hand, to counter the hegemony of the US dollar in international exchanges and transactions, and on the other hand, to  deal with the increasing energy security risks due to sanctions on China's oil suppliers. The purpose of this study is to examine China's actions towards de-dollarization through the establishment of the trans-regional BRICS organization and then to analyze the reasons behind Saudi Arabia's interest in joining this organization.Methods: The research method is trend analysis using time series and seeks to answer the question: What impact does BRICS membership have on the de-dollarization of trade between China and Saudi Arabia? The initial answer to the research question, which is the research hypothesis, is: the mechanisms designed in the BRICS by China will have a significant potential for Saudi Arabia to reduce dependence on the dollar.Results and discussion: Findings indicate that China has become the most important partner of Saudi oil exports during the period under review . In contrast, the consequences of sanctions against Iran and Russia have caused Saudi Arabia to try to reduce its dependence on the dollar. The processes within BRICS, especially trading in yuan on par with gold, have created the necessary capacity for Saudi Arabia to reduce its dependence on the dollar. At the same time, it should be noted that the measures taken by Saudi Arabia to expand cooperation with China are overshadowed by its relationship with the United States. Since Saudi Arabia is deeply integrated into the US-led economic and security framework, it cannot easily reduce its dependence on the dollar. Additionally, There is no intention at this time to abandon currency ties or end the defense partnership with the United States. For this reason, Saudi Arabia's long-term strategy is to develop the ability to conduct transactions in both the dollarized and de-dollarized regions, and to reduce its dependence on the United States while maintaining its position in the world energy distribution.Conclusions:The most important point about the process of de-dollarization and the efforts of organizations like BRICS, led by China, to counter the hegemony of the dollar is that de-dollarization has never meant abandoning the dollar. Instead, it is an attempt to diversify countries' currency reserves and increase the maneuverability of central banks in international exchanges and transactions. This is why China remains one of the largest  buyers of US Treasury bonds, despite its significant efforts to reduce the scope of the US dollar's power in international exchanges. In parallel, although it is unlikely that Saudi Arabia will be able to abandon the US dollar in the short and even medium term, it is nevertheless developing a broader financial instrument to reduce its dependence. Saudi Arabia has taken important steps such as designing a central bank digital currency, which plays an important role in the exchanges of BRICS members. Despite being in their early stages, central bank digital currencies appear to be a promising new tool to reduce the dependence of the dollar on regional and trans-regional cross-border transactions.

Among the reasons for the formation of the BRICS organization are the financial crises and the problems of dependence on the dollar, for this reason, the member countries of this organization have tried to increase the power of their central banks by carrying out the processes called de-dollarization. Iran is one of the countries that has become a member of the BRICS organization, and at the same time, it is under the influence of sanctions and dependence on the dollar. Therefore, the aim of the current research is the feasibility of de-dollarization of Iran's economy based on the BRICS membership based on the theory of de-dollarization. Considering that the two countries China and Russia are using their global exchange systems and both are members of BRICS, the question has been raised that according to the economic agreements of BRICS, what advantages will membership in this organization bring to Iran and how the field of dollarization for Will it provide Iran? The hypothesis of the research is that according to the activity of the global exchange systems of China and Russia in front of SWIFT, the use of BRICS economic cooperation is a suitable platform for Iran's dollarization. In order to investigate the current situation, the data from 1996 to 2020 has been analyzed using the time series technique. The findings of the research indicate that the BRICS membership, in addition to providing the basis for increasing economic exchanges, will also provide a suitable platform for de-dollarization of Iran's trade, considering the extent of partner countries in the systems of China and Russia. At the same time, it should be noted that dollarization does not mean abandoning the dollar as a currency in international exchanges, and it only refers to increasing diversity in the currency portfolio of countries.

The international role of the dollar in the global economy remains dominant. Nonetheless, there is a belief that various factors, including geopolitical changes, technological advancements, and China's increasing role as an emerging power, may challenge the hegemony of the American dollar as a dominant force. China has implemented a range of significant and diverse policies in pursuit of de-dollarization to weaken one of the key pillars of American power. In this research, we employ an analytical-explanatory method and draw upon written and online sources, as well as data from financial and banking institutions, to address the fundamental question: What actions has China taken in pursuit of de-dollarization, and to what extent have they been effective? The hypothesis proposed suggests that considering the dollar's control over the financial structure and the international payment system, as well as the world's countries dependence, including China's, on the existing financial and monetary structure, dollar hegemony has persisted despite China's confrontational policies and has not encountered significant challenges thus far. The research findings suggest that while China's de-dollarization policy is acknowledged as a potential threat to dollar hegemony, it has not succeeded in challenging the dominance of the American currency, and it appears that the dollar-based system will continue predictably into the future.

Extended AbstractIntroduction: The fluctuations caused by the depreciation of the dollar along with the imposition of sanctions against countries using the power of the dollar have caused other countries to seek to reduce dependence on the dollar— a process known as de-dollarization. This is especially important for the People's Republic of China for two reasons: on the one hand, to counter the hegemony of the US dollar in international exchanges and transactions, and on the other hand, to  deal with the increasing energy security risks due to sanctions on China's oil suppliers. The purpose of this study is to examine China's actions towards de-dollarization through the establishment of the trans-regional BRICS organization and then to analyze the reasons behind Saudi Arabia's interest in joining this organization.Methods: The research method is trend analysis using time series and seeks to answer the question: What impact does BRICS membership have on the de-dollarization of trade between China and Saudi Arabia? The initial answer to the research question, which is the research hypothesis, is: the mechanisms designed in the BRICS by China will have a significant potential for Saudi Arabia to reduce dependence on the dollar.Results and discussion: Findings indicate that China has become the most important partner of Saudi oil exports during the period under review . In contrast, the consequences of sanctions against Iran and Russia have caused Saudi Arabia to try to reduce its dependence on the dollar. The processes within BRICS, especially trading in yuan on par with gold, have created the necessary capacity for Saudi Arabia to reduce its dependence on the dollar. At the same time, it should be noted that the measures taken by Saudi Arabia to expand cooperation with China are overshadowed by its relationship with the United States. Since Saudi Arabia is deeply integrated into the US-led economic and security framework, it cannot easily reduce its dependence on the dollar. Additionally, There is no intention at this time to abandon currency ties or end the defense partnership with the United States. For this reason, Saudi Arabia's long-term strategy is to develop the ability to conduct transactions in both the dollarized and de-dollarized regions, and to reduce its dependence on the United States while maintaining its position in the world energy distribution.Conclusions:The most important point about the process of de-dollarization and the efforts of organizations like BRICS, led by China, to counter the hegemony of the dollar is that de-dollarization has never meant abandoning the dollar. Instead, it is an attempt to diversify countries' currency reserves and increase the maneuverability of central banks in international exchanges and transactions. This is why China remains one of the largest  buyers of US Treasury bonds, despite its significant efforts to reduce the scope of the US dollar's power in international exchanges. In parallel, although it is unlikely that Saudi Arabia will be able to abandon the US dollar in the short and even medium term, it is nevertheless developing a broader financial instrument to reduce its dependence. Saudi Arabia has taken important steps such as designing a central bank digital currency, which plays an important role in the exchanges of BRICS members. Despite being in their early stages, central bank digital currencies appear to be a promising new tool to reduce the dependence of the dollar on regional and trans-regional cross-border transactions.