The BRICS alliance is spearheading the de-dollarization agenda across the globe and developing countries are finding the initiative lucrative. The bloc is convincing developing nations to sideline the U.S. dollar and trade in local currencies to strengthen their native economies. The U.S. Feds finally reacted to the BRICS agenda of de-dollarization and assured Americans that the dollar remains strong despite the challenges.
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The Feds Christopher Waller acknowledged that the BRICS de-dollarization campaign has grown bigger but has not affected the U.S. dollar. He explained that Americans need not worry as the U.S. dollar is still the world’s most traded currency for all transactions despite the de-dollarization threats. Read here to know how many sectors in the U.S. will be affected if BRICS ditches the dollar for trade.
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BRICS: U.S. Feds React To De-Dollarization Campaign
The Fed Governor Christopher Waller mentioned BRICS de-dollarization during the opening remarks at a recent conference on the U.S. dollar. After the remarks, Waller stressed that the U.S. dollar remains the world’s de facto “reserve currency” and its dominance is not coming to an end.
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“The dollar remains by far the most widely used currency by a number of metrics,” Fed Governor Waller said. “There has been for some time commentary predicting that the dollar is destined for demise–potentially an imminent demise,” he said.
He assured Americans that the U.S. dollar is gaining strength and outperformed all leading currencies despite de-dollarization threats from BRICS. “Recent developments that some have warned could threaten that status have, if anything, strengthened it, at least so far,” he summed it up.
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In conclusion, the Fed Governor is cautious about BRICS’ de-dollarization but believes the U.S. dollar can overcome the challenge. The U.S. dollar is the top used currency in the world and ditching it will only cause losses to BRICS and other exchequers.