If BRICS nations drop the US dollar and adopt local currencies for trade, the ripple effects could shake the foundation of the American economy. The US economy is closely tied to global affairs, and if emerging economies reduce dependency, American jobs would be at risk. In addition, it would also lead to inflation as the Fed can no longer import the USD abroad for consumption. From Wall Street to Silicon Valley, here are the 4 US industries that would feel the impact the most.
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Here Are the 4 Economic Industries That Will Be Hit If BRICS Drops the US Dollar
A total of 4 US economic industries will be severely hit if BRICS decides to drop the dollar for trade. The move would have major implications for the American economy, causing the greenback to lose its sheen. The forex markets run on demand and supply, which the USD dominates, but if the demand falls, the greenback would face deficits. Below are the 4 economic industries that will be hampered if BRICS decides to dump the US dollar for trade.
- Stock Market & Wall Street
- Export & Manufacturing Industry
- Digital Payments & Technology
- US Government & Debt Markets
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The 4 industries are closely linked, and if the stock market is affected, the turbulence will run down on everything. The spillover would eventually reach the bottom of the barrel, which is jobs, as corporations would cut down on the workforce. Things would go helter-skelter if that happens, as inflation would also eat up on people’s earnings, leading to lesser savings. The day-to-day essentials would see a rapid price increase and would lead to the economy facing a recession. If BRICS decides to pull the plug on the US dollar someday, the American economy would face catastrophic economic consequences.