The BRICS bloc is continuing its dominance and objective to eliminate the US Dollar, and now the US Treasury Secretary predicts the greenback may fall. Treasury Secretary Janet Yellen spoke on “de-dollarization” during a congressional hearing this past summer, and indicated a worry for USD.
When asked at the time if the dollar’s international status was declining, Yellen said “We should expect over time a gradually increased share of other assets in reserve holdings of countries — a natural desire to diversify. But the dollar is far and away the dominant reserve asset.”
In 2022, the US dollar saw an 8% decline in its share of global reserves. With that decline, BRICS is growing in numbers and support. Furthermore, the bloc is pushing its de-dollarization initiative, inquiring with more countries who are reliant on the US dollar to abandon it. Thus, a shadow does appear to be growing behind the greenback, and representatives of the US have begun to take notice.
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Can The US Dollar Fight Off BRICS Any Longer?
Despite this, Yellen is adamant that the US dollar has built enough strength to fend off any adversaries. The US Secretary said in the same setting that “it will not be easy for any country to devise a way to get around the dollar.” However, she understands that there is a global interest in diversifying reserve currency. Since the US dollar has suffered over the past half-decade, more countries are interested in their local currencies and an alternative to the greenback. Hence why BRICS has garnered so much attention as of late.
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The US Dollar still has time before any fall-off becomes a serious threat. However, even experts on the US currency are wary of BRICS’ growing threat of de-dollarization. Secretary Janet Yellen wasn’t the first, and won’t be the last US voice to share warnings about BRICS and the future of the US Dollar.