The BRICS alliance has turned aggressive in advancing the de-dollarization initiative to bring down the US dollar’s global hegemony. They are forging new trade deals with other developing countries to settle cross-border transactions in their respective local currencies. The long-term goal of the 10-member bloc is to diminish the Western powers and tilt the financial authority towards the East.
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The main objective of BRICS is to usher the world into a new financial era where the US, the dollar, and other Western allies have no power in global affairs and the overall markets. The roadmap is already set, and the developing nations are working towards making it a reality. Whether they will be successful in bringing the US dollar down or not, only time will tell.
However, if BRICS manages to abandon the dollar, one important US sector will be the first to crash. It holds the keys to the American economy and global superiority, and without its support, America might never be a superpower. In this article, we will explain the top sector that will crash first if BRICS ditches the dollar.
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Top US Sector To Crash If BRICS Ditches the Dollar
The US banking sector will be the first to come crashing down if BRICS ditches the dollar for cross-border transactions. Leading global banking giants such as JP Morgan, Bank of America, Citigroup, and several others will lose trillions of wealth. These US banks are heavily exposed to the US dollar through foreign exchange and dollar-denominated debt.
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If BRICS decides to pull the plug on the dollar, US banks will face a liquidity crunch affecting interest rates and profits. These banks supply the US dollar ‘forward and backward’ into America, and failing to do so will add greater pressure. It would expose the stock market to an extensive decline that has never been seen before. In conclusion, the first US sector to crash if BRICS sidelines the dollar is the American banking system.