Leading global bank HSBC has predicted the future of the US dollar forecasting how long the currency can stay as the world’s reserve. The prediction comes at a time when the BRICS alliance is looking to dethrone the US dollar from the global reserve currency status.
Read here to know how many sectors in the US will be affected if BRICS ditched the dollar for trade. The threat against the US dollar from local currencies remains high as developing nations are targeting the USD.
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BRICS: HSBC Predicts the Prospects of the US Dollar
HSBC Securities Chief Commodities Analyst, James Steel remains positive that the US dollar will wither the storm initiated by BRICS. He said in an interview with Bloomberg that the US dollar has not faced any significant challenges except a blip in reserves. For the uninitiated, the central banks of BRICS and other developing countries have been dumping the US dollar and diversifying their reserves.
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Central banks have been massively accumulating gold since 2022 after the US pressed sanctions on BRICS member Russia for invading Ukraine. The HSBC analyst explained that BRICS accumulating gold will have no impact on the prospects of the US dollar. He stressed that the US dollar will remain a dominant currency even after 20 years.
“We don’t believe that there’s going to be any loss of sovereignty for the U.S. dollar as far as the world’s reserve currency goes, for the next 10, 20 years, as far as we can see, for reasons that would take an entire program, you and I could talk about it,” he said.
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In conclusion, HSBC has predicted that the US dollar will be the de facto currency even after two to three decades. The BRICS de-dollarization agenda could fail as local currencies stand no chance of beating the US dollar.