Forecast: US Dollar collapse. BRICS countries to increase their global economic influence
Carlos Payumo Garcia, CLSSBB
WFIS Wealth Management Expert of the Year 2024 | Six Sigma Black Belt | GCash | Treasury Transformation | Governance & Projects Head | Capital Markets
In recent years, there have been growing concerns about the stability of the US dollar as the world's reserve currency. The rising power of the BRICS countries (Brazil, Russia, India, China, and South Africa) and their currencies has been a major factor contributing to this concern. In 2023, the US dollar could potentially face a collapse as a result of the increasing use of BRICS currencies in global trade.
The BRICS countries have been making strides to increase their global economic influence, and their currencies have been gradually gaining traction in international trade. For example, China has been working to promote the use of its currency, the yuan, in international transactions. In recent years, it has established currency swap agreements with a number of countries, allowing them to bypass the US dollar in their trade transactions.
In addition, the Russian government has been pushing for a new international currency standard to be created, which would provide an alternative to the US dollar. The proposed currency standard would be based on a basket of currencies, including the yuan, the ruble, and the Indian rupee. This move would provide an alternative to the US dollar as a reserve currency and would potentially lead to a decrease in demand for US dollars.
If the BRICS currencies continue to gain traction in global trade, this could lead to a significant decrease in demand for the US dollar, which could ultimately cause the currency to collapse. This would have major implications for the global economy, as the US dollar is currently the world's reserve currency and is used in a large percentage of international transactions.
The collapse of the US dollar could also lead to significant inflation in the United States, as the value of the currency would decrease rapidly. This would lead to higher prices for goods and services, which would have a major impact on the standard of living for Americans.
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In order to prevent the collapse of the US dollar, the United States government would need to take steps to maintain the currency's stability. This could include increasing interest rates, reducing the national debt, and promoting US exports to increase demand for the currency.
In conclusion, the increasing use of BRICS currencies in global trade could potentially lead to the collapse of the US dollar in 2023.
Source: Bloomberg
A former educator with extensive experience in program development, data entry, performance review, leadership, and writing. Honorably discharged United States Marine that is an effective communicator and team player.
1 年Lol this made me laugh.?
Cyber Security Analyst at Vanguard
1 年Could potentially but in reality will not because anger and sentiment do not care about the fact that th US dollar is the currency of international trade. Not because I like America, because I embrace reality. Of course other nations want to be the reserve currency .. but they are not. Reality.
Founder at GNAR AF LLC / Founder & CEO CTAG Ozone Remediation
1 年I disagree that we are heading into a collapse of the dollar in 2023. What is clear is that the world economies are adjusting their reserve currency holdings’ percentages and exploring new options. The US has had an Exorbitant Privilege, and that will come to end eventually. While the percentage of foreign reserves held in dollars is going down, it is still the vast majority and will continue to play a vital role in global commerce. The Pound Sterling, the world’s reserve currency before it was replaced by the U.S. Dollar, remains a percentage of foreign reserves to this day, albeit a small percentage