Key Points
- BRICS expansion in 2024 presents significant challenges to the US Dollar’s global dominance.
- The addition of Saudi Arabia and the UAE to BRICS is a step towards reducing the dollar’s hegemonic status.
- Concerns arise regarding the potential for crude oil sales outside of the US dollar, impacting the dollar’s role as the global reserve currency.
BRICS Expansion Sparks Dollar Dilemma: 2024 Predictions Unveiled!
Amidst the expanding BRICS de-dollarization plans, experts predict significant challenges for the US Dollar in 2024. The growing economic alliance poses an obstacle to the dollar’s dominance, with potential ramifications expected this year.
Rebecca Walser, President of Walser Wealth Management, emphasized the impact of BRICS expansion on the US and its role in the global shift away from the dollar as the primary reserve currency. She foresees substantial challenges for the US dollar in 2024 as the BRICS countries embrace global de-dollarization.
Walser particularly highlighted the significance of the addition of Saudi Arabia and the United Arab Emirates (UAE) to the BRICS bloc, which marks a step toward diminishing the dollar’s hegemony. Concerns also revolve around the possibility of these nations selling crude oil outside the US dollar, potentially disrupting the dollar’s status as the global reserve currency.
For more details, you can read the full article on Watcher Guru.
BRICS Expansion and the US Dollar’s Decline in 2024
BRICS’ undermining of US dollar dominance is driven by three key strategies:
- Declining US Reserves by Central Banks
- Global Trade and Energy Production
- Rising US Debt and Rising Local Currency Usage
The decline in central banks’ US dollar reserves below 60% from over 70% indicates a reduced dependency on the dollar.
The BRICS expansion to include major energy players is reshaping the global trade and energy landscape.
With China as the world’s largest exporter and BRICS countries increasingly dominating oil trade, the use of local currencies within the BRICS bloc is bolstering their value against the dollar
Additionally, the soaring US national debt, exceeding $33 trillion, highlights potential economic instability. BRICS nations are promoting the use of their own currencies over the dollar and the possibility of a BRICS currency emerging, which could become a significant new player in the global currency market
The BRICS alliance’s initiatives to promote their own economies, expand global trade in local currencies, and potentially introduce a new BRICS currency are not just challenging the status quo—they’re redefining it.
As 2024 unfolds, the world will be watching the impact of these developments on the US dollar’s dominance
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