BRICS countries are looking to tear apart the dominance of the U.S. dollar and replace it with a new currency on the international stage. If things go their way, the dollar could be sidelined and nations around the world could settle trades in their native or new currency.
This would make the dollar lose power and its command over the international trade could be punctured. Therefore, 2023 is a pivotal time for the USD as its fate depends on how well BRICS nations manage the situation.
Also Read: BRICS Gold Buying Spree Worrisome, Could Doom U.S. Dollar: Here’s Why
BRICS Trying to Dominate the U.S. Dollar & America Does Nothing?
Surprisingly, the Joe Biden administration is mute in handling the BRICS situation and is doing little to nothing in stopping them. The Biden administration is not reaching out to other countries to resolve the dollar issue. A dialogue between the United States and BRICS nations is missing creating a void in communication.
This gives BRICS an upper hand to decide as they please, as the U.S. remained silent. Firstly, the Biden administration failed to contain the banking crisis which led to three banks being shut down. In addition, the U.S. debt ceiling is reaching new highs making the economy stand on muddy waters. The government now wants to raise the debt ceiling to $31.4 trillion and stands at risk of a debt default.
Also Read: BRICS: U.S. Dollar Fading as Supply & Demand Dips
If it defaults, the financial catastrophe could spread its wings across the world and cause cracks in developing nations’ economies. Would other countries want to be a part of such a disastrous narrative? The answer is no.
Therefore, to set things in order and prevent BRICS from creating a new currency, the Biden administration should clean its house first. The dollar has not lost its shine yet and the time to reclaim the global territory is still ripe. If the U.S. dollar makes a comeback and remains strong, other nations could automatically come flocking toward it.
Also Read: BRICS Advancing To Eliminate U.S. Dollar Financial System
In conclusion, America needs to do more to strengthen the dollar which could eventually puncture the new BRICS currency. But will the Biden administration do that or will just remain mute spectators? Only time will tell.