The Shift Towards De-Dollarization and the Importance of Tech Skills in Finance

Feranmi Olaseinde

Hatched by Feranmi Olaseinde

May 24, 2024

3 min read


The Shift Towards De-Dollarization and the Importance of Tech Skills in Finance

In recent times, there has been a growing trend among nations to reduce their reliance on the US dollar in global trade. Countries like India and the United Arab Emirates (UAE) are leading the way by exploring alternatives and finding ways to cut transaction costs and eliminate the need for dollar conversions.

India, as the world's third biggest oil importer and consumer, has taken significant steps towards de-dollarization. Last year, the country's central bank introduced a framework for settling global trade in rupees. This framework became a reality when India and the UAE signed two agreements. The first agreement allows for trade to be settled in their local currencies, while the second agreement aims to simplify cross-border money transfers through a real-time payment link.

The de-dollarization trend is not limited to India and the UAE alone. Powerful nations like China and Russia are also actively seeking to reduce their reliance on the US dollar. This shift is largely in response to aggressive US sanctions and foreign policy plays. By diversifying their currency reserves and exploring alternative settlement methods, these countries hope to protect their economies from external shocks and maintain their autonomy in global trade.

While the focus on de-dollarization is crucial in the realm of international trade, it is equally important for individuals in the finance and accounting sectors to stay updated with the latest technological advancements. In this digital age, proficiency in tech skills can significantly enhance career prospects in finance and accounting.

From a career perspective, Excel remains an essential skill in finance and accounting. Proficiency in Excel, particularly with expertise in macros, is highly valued. It allows professionals to analyze data, create financial models, and automate repetitive tasks, thereby improving efficiency and accuracy in their work.

In addition to Excel, programming languages like Python and SQL are increasingly becoming valuable skills in the finance industry. Python, in particular, offers a wide range of applications in finance, including data analysis, algorithmic trading, and risk management. While it may not be necessary for finance professionals to possess the same level of expertise as computer science students or engineers, a working knowledge of Python can be a significant asset.

SQL, on the other hand, is essential for managing and manipulating large datasets. It allows finance professionals to extract relevant information from databases, perform complex queries, and generate meaningful insights. With the increasing use of data analytics in finance, SQL skills can greatly enhance one's ability to make informed decisions based on accurate and up-to-date information.

In conclusion, the shift towards de-dollarization in global trade is gaining momentum, with countries like India and the UAE leading the way. Simultaneously, the finance and accounting sectors are witnessing a growing demand for tech skills. Proficiency in Excel, Python, and SQL can significantly enhance career prospects and improve efficiency in finance-related roles. As the world becomes increasingly interconnected, staying updated with both financial and technological developments is crucial for professionals in these fields.

Actionable Advice:

  • 1. Invest time in improving Excel skills, particularly in areas like macros, as it remains a fundamental tool in finance and accounting.
  • 2. Consider learning Python to leverage its applications in finance, such as data analysis and algorithmic trading. Even a basic understanding can be advantageous.
  • 3. Familiarize yourself with SQL to effectively manage and manipulate large datasets. This skill can greatly enhance your ability to extract valuable insights and make informed decisions.

Remember, staying adaptable and continuously updating your skill set is essential in today's dynamic and interconnected world.

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