The BRICS bloc is looking to put an end to the U.S. dollar’s global reserve currency status. BRICS wants to put their local currencies ahead of the U.S. dollar to settle cross-border transactions. The move will strengthen their native economies making businesses thrive and massively save on one-sided exchange rates. A stronger local currency will reflect positively on their respective GDPs making their economies receive a boost in the arm.
Also Read: 34 Countries Look to Join BRICS Alliance After Saudi Arabia’s Entry
Not only is BRICS planning to ditch the U.S. dollar, they are convincing other countries to follow the same path. If the de-dollarization trend picks up steam, the U.S. dollar will be the hardest-hit currency in the markets. Read here to know how many sectors in the U.S. will be affected if BRICS ditched the dollar for trade.
Also Read: BRICS Control 47% of Global Oil, U.S. Owns Just 2.1%
BRICS: The Era of U.S. Dollar Dominance is Over, Predicts Wall Street Analyst
The global dominance of the U.S. dollar could end soon and no longer remain the world’s reserve currency, warns 83-year-old Wall Street analyst Dick Bove. The veteran analyst highlighted the de-dollarization trend kickstarted by BRICS and their ability to convince other developing countries to ditch the U.S. dollar. Bove said that the era of the U.S. dollar is almost finished and the USD remains on its last leg.
Also Read: BRICS: No Demand For US Dollar Bonds, Sales Get Worst Start Since 2016
“The U.S. dollar is finished as the world’s reserve currency,” said Bove to the New York Times. The analyst recently retired from Wall Street after serving clients for 54 years in the finance industry.
Bove perceived that China could be the main culprit that could bring the U.S. dollar down from its throne. He explained that China’s economy could soon surpass the U.S. as they dominate the manufacturing industry. He warned that the U.S. outsourcing its manufacturing units will soon lead to its decline and make way for developing countries to rise.