The BRICS summit ended on a high note in August after the bloc inducted six new countries into the group. Leading oil-producing nations Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia will join the alliance in January 2024. Also, Argentina is the only new BRICS member that does not produce and export oil. The one common thing between the 11-member BRICS group is their disdain for the U.S. dollar. Moreover, BRICS is looking to end dependency on the U.S. dollar by promoting their local currencies for cross-border transactions.
In this article, we will highlight the 10 American sectors that could be severely affected if BRICS stops using the U.S. dollar for trade. The American economy could be significantly impacted if other local currencies grow stronger in the international markets.
BRICS: 10 U.S. Sectors To Be Impacted If Dollar is Ditched As Payment
A total of 10 financial sectors in the U.S. will be affected if BRICS uses local currencies and not the U.S. dollar. The sectors include banking, trade, forex, and tourism, among others. The U.S. financial sectors that could be affected if BRICS ditch the U.S. dollar are:
- Global Financial System
- Banking and Finance
- Energy and Commodity Markets
- International Trade and Investment
- Capital Markets
- Consumer Goods and Retail
- Production and Consumption
- Technology and Fintech
- Government and Policy
- Travel and Tourism
Moreover, all the 10 sectors are closely linked to the U.S. economy and could have complications if the dollar loses demand. The banking sector could take the first hit that might eventually spill over to the markets.
Once the financial markets are hit, the domino effect could roll over to all sectors leading to a financial catastrophe. In conclusion, if the U.S. fails to fund its deficit, prices of all commodities could skyrocket or even reach hyperinflation.