BRICS members China and Russia are pulling the strings to free the world from the clutches of the US dollar. Chinese President Xi Jinping said in a press meeting recently that the “United States days of bullying the world are coming to an end”. There could be merit to the statement as BRICS successfully convinced other developing countries to ditch the US dollar. The alliance is making developing countries trade in local currencies and strengthen their native economies.
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Read here to know how many sectors in the US will be impacted if BRICS ditches the dollar for trade. The US dollar is facing competition from all sides as developing nations are looking to uproot it from the world’s reserve status. The goal is to put local currencies in the forefront for cross-border transactions and push the US dollar second in line.
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The weaponization of the US dollar is what’s driving developing countries to ditch the currency and join BRICS. In addition, the US pressing sanction of developing economies led to the mass exodus favoring local currencies for transactions. The development is only the start and BRICS will continue it for many more years and decades to come.
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Gradually, BRICS aims to end the US dollar dominance and make it ineffective on the global scale. They have been briefly successful in kick-starting the de-dollarization agenda and are in it for the long term. Therefore, the next decade will be different for the US dollar as it will face challenges from various countries and currencies.
Nonetheless, the US will not go down without a fight and will take the BRICS alliance head-on. The upcoming situation in the global financial sector will be the most interesting development this decade to watch out for.
