A total of 21 countries have officially agreed to ditch the US dollar in 2023. The BRICS alliance and the ASEAN bloc of nations are putting forward their local currencies, bypassing the US dollar for global trade. Tesla CEO Elon Musk revealed recently why BRICS, ASEAN, and other countries are looking to end their reliance on the US dollar.
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The White House’s pressure on other developing nations is what led the BRICS to cut ties with the US dollar. Many other countries, apart from BRICS and ASEAN, are now aiming to end their dependency on the US dollar. Read here to know how the American economy will be impacted if the BRICS completely ditch the US dollar for trade.
Elon Musk Reveals Why BRICS & ASEAN Countries Are Ditching the US Dollar
Elon Musk revealed that US foreign policy is heavily one-sided, eventually weakening the economies of developing countries. The highhandedness of the American government is what’s making BRICS and ASEAN countries ditch the US dollar, he said.
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According to Musk, the US is punishing developing countries through sanctions, and they are retaliating by ditching the dollar. This puts the US under pressure, as it would have fewer means to fund its deficit in the long run.
“Serious issue. US policy has been too heavy-handed, making countries want to ditch the dollar,” Musk said in a comment on Twitter. The billionaire also added that the US’s importing inflation is another reason why countries are ending their reliance on the US dollar. “Combined with excess government spending, which forces other countries to absorb a significant part of our inflation,” he said.
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The US has currently pressed sanctions against Russia, Iran, Iraq, Libya, Crimea, Cuba, and Afghanistan. Sponsoring terrorism and waging war against other countries are the reasons why America pressed sanctions on these nations.