Whether you like it or not, the de-dollarization agenda kick-started by the BRICS alliance is here to stay. There is no denying that the US dollar reigns supreme despite multiple global challenges, but how long can it fend off its adversaries? In the early 20th century, the United Kingdom had its colonies all across the world and ran a famous phrase ‘the sun never sets on the British empire’. Its territories were so large, that you were considered crazy if you would think it would all end someday.
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In no surprise, the sun did set on the British empire just 45 years after the phrase came into existence. The UK is now a country struggling with finances and its colony India, which is a BRICS member has surpassed it through a robust GDP. The turn of events could be brutal as time passes by and those who think that the US dollar will remain supreme forever need a reality check of the British empire.
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BRICS: De-Dollarization is Difficult and Takes Time, But Won’t Stop
The BRICS bloc confirmed that the de-dollarization agenda is a long-term goal and will fight could go on for decades. The more the fight prolongs, the higher the chances are of bringing the US dollar down from the reserve currency status. How the endless wars brought down the British empire, a similar fate could hit the US dollar.
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The New Development Bank, commonly called the BRICS bank made it public that de-dollarization is not a short-term goal. “The development of anything alternative is more a medium to long-term ambition,” said Leslie Maasdorp, VP of New Development Bank to Fortune.
The White House needs to take the challenge seriously and not brush off the de-dollarization agenda kick-started by BRICS. If the US remains prepared to take on the challenges, emerging economies will find it difficult to pull through. Knowing the steps the enemy takes can help America fight off the challenges provoked by the bloc.