Leading global investment bank Standard Chartered predicted whether the BRICS alliance can replace the US dollar. The global market is experiencing a paradigm shift where local currencies are running towards the start line. The US dollar is no longer in a commanding position as developing countries are cutting ties with the currency.
The sanctions, national debt, trade wars, tariffs, and unruly foreign policies led to emerging economies grow angst against the greenback. The angst was built up decades ago, but only exploded in recent years. Keeping all developments into consideration, Standard Chartered’s Managing Director, Global Head, and Geopolitical Analyst Philippe Dauba-Pantanacce predicted what could happen to the US dollar amid the BRICS onslaught.
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BRICS: US Dollar is Being Questioned, But Might Not Get Replaced: Standard Chartered
The Standard Chartered’s Global Head explained that the US dollar is being questioned, but BRICS can never replace it. “The dollar is not dead, but it is taking on new forms,” he said in a recent interview. He stressed that many countries are moving away from the greenback as the White House is weaponizing the currency.
“More and more countries are seeking to reduce their dependence on the dollar, partly because the United States has used the dollar as a weapon for political purposes,” he said. The Standard Chartered’s MD revealed that Russia’s exclusion from SWIFT kick-started the angst against the US dollar.
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Exclusion of Russian banks from SWIFT “has led many emerging markets to question the neutrality of a currency they view as too closely tied to decisions made in Washington,” he explained. This makes the policies of the US lopsided, with little to no trust from emerging economies. This is among the reasons why BRICS is aiming to topple the US dollar.
However, the Standard Chartered expert stressed that the de-dollarization trend from BRICS does not mean the collapse of the US dollar. According to his analysis, “de-dollarization is real, but progressing slowly and does not change the fact that the dollar remains the dominant currency in international trade, global reserves, and financial markets,” he summed it up.