BRICS nations are moving ahead in creating a new currency to settle global trade by eliminating the U.S. dollar. The move could have drastic implications on the American economy and shift the balance of power towards developing countries.
The dollar had been the global reserve currency for nearly a century and BRICS is uprooting its dominance. A handful of sectors could face losses if BRICS currency becomes the newest method to settle international trade agreements.
In this article, we will highlight which sectors could be badly hit if BRICS launch their new currency undermining the hegemony of the U.S. dollar.
Also Read: After BRICS, GCC Nations Could Pose a Threat to the U.S. Dollar
U.S Sectors To Be Hit If BRICS Launch New Currency
Around 24 countries are interested in trading with BRICS currency than paying with the U.S. dollar for global trade. Therefore, the development could impact the American economy and upset several sectors and industries.
Also Read: BRICS Promoting Native Currency Before Launching New Tender
The U.S. sectors to be affected if BRICS launch their currency are:
- Oil and gas
- Banking and Finance
- International trade
- Tourism and travel
- The foreign exchange market
- Production and consumption
In addition, 5 Arab nations have shown interest in joining the block and accepting the yet-to-be-released currency for trade. Also, oil-rich Saudi Arabia has formally sent their application to join the block and aid the new currency.
Saudi Arabia is the biggest exporter of oil to America, Europe, and other Eastern countries. Also, the Western nations are heavily dependent on Saudi oil and the oil-rich nation could force the West to pay in the new BRICS currency.
The development could embolden the new currency and pose a serious threat to the U.S. dollar. Nonetheless, a handful of sectors could face damages if the dollar declines and could take decades to recover.
Also Read: BRICS Countries Buying Large Amounts of Gold To Topple the U.S. Dollar
The global financial order is tilting towards the East as we know it, creating a new world economy. The U.S. could face difficult times if the dollar’s value drops further from here which could hurt the average American dearly.