The US dollar is currently witnessing a surge in its enemies. The American currency’s foes have been doubling at a rapid pace, with several nations magnifying and stressing the agenda of de-dollarization. With the US being part of a prestigious G7 alliance, the emerging BRICS pact continues to show its meteoric potential to the US to subdue the US Dollar’s supremacy to a certain extent. But can the US dollar be truly subdued?\
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G7 vs. the Triumvirate
The G7 pact, consisting of the prosperous 7-nation bloc, is now gunning for global supremacy. These nations, notably Canada, France, Germany, Italy, the United Kingdom, and the United States, are all aiming to become leaders in the global political race. With the USD gaining reserve currency status, the process of subduing and derailing it has now become the highlight for many nations. With the multipolar agenda gaining momentum, the world is now witnessing a surge in local currency usage, which, to a certain extent, is harming the USD’s global prestige.
The G7 pact includes the five most important currencies in the world. These currencies are dubbed highly influential and powerful, standing shoulder-to-shoulder in league with the US dollar.
The currencies, notably the GBP, Euro, Canadian Dollar, and Japanese yen are dubbed the strongest currencies in the world. However, with the yen losing support against the US dollar, the Euro, GBP, and Canadian Dollar are still holding a strong footing, aiming to diversify their holdings to exude a commanding stance out into the world.
The majority of these currencies played a pivotal role in managing world affairs until the BRICS alliance emerged. The alliance comprises Brazil, Russia, and India. China and South Africa are currently playing a pivotal role in streamlining the de-dollarization agenda. BRICS is currently working on launching its currency system to rival the US dollar. China and Russia have already ditched the US dollar by conducting trade in local currencies.
G7 US Dollar Link: Analyst’s View Of The Situation
Per Don Popescu, a notable financial analyst, the perfect three-nation “trifecta” consisting of India, China, and Russia is poised to derail the US dollar in the long haul. Popescu later shared that the five-nation bloc is set to sweep the US dollar dominion away gradually.
“Watch this triumvirate of Putin, Xi, and Modi closely in the near future in geopolitics, currency/gold, de-dollarization, and international payment systems.
They control most of Asia’s territory, population, and wealth. They will lead the BRICS vs. G7 cold war.”
Why Russia, India, and China?
Russia is known to have held a grudge against the US dollar. With the US imposing sanctions on Russia in the wake of its war against Ukraine, Russia has been projecting a negative stance for the USD, spearheading agendas that may hamper the US Dollar’s diversification in the G7 and the entire world. The country now conducts the majority of its deals in Chinese Yuan or the Ruble, evading US dollar usage at all costs.
“It wasn’t us who banned the use of the US dollar. We had no such intention. It was the decision of the United States to restrict our transactions in US dollars. I think it is complete foolishness from the point of view of the interests of the United States. And its taxpayers. As it damages the US economy and undermines the power of the United States across the world,” Putin later shared.
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China in its quest to become the next world power, is also supporting Russia in derailing the US dollar.
At the same time, India is also echoing a similar stance. India is conducting holistic trade proceedings with other nations in local currencies rather than using the US dollar.