BRICS: Nasdaq Warns Alliance Could De-Stabilize US Dollar into Crisis
A cautionary note has been sounded by a Nasdaq analyst regarding the BRICS alliance, suggesting the group could potentially push the US dollar into a dire situation. This bloc—comprising Brazil, Russia, India, China, and South Africa—has been steadily undermining the greenback’s global dominance, a trend that’s been fueled by the dollar’s recent bearish run amid inflationary pressures and other economic woes. Melissa Pistilli of Nasdaq and the Investing News Network pointed out that a new BRICS currency might pave the way for these nations to challenge the existing international financial order. An intriguing revelation noted that about one-fifth of oil trades in 2023 have been settled in non-dollar currencies, a sharp contrast to the almost complete dominance of the dollar just a few years back.
The quest to dethrone the US dollar is not entirely fresh but has gained momentum, with more countries showing interest in backing BRICS’s initiatives. This shift is exemplified by China’s active participation in promoting de-dollarization. Pistilli highlighted that should BRICS launch a new reserve currency, it could dramatically weaken the greenback. Adding to this, the march toward Central Bank Digital Currencies (CBDCs) further threatens the dollar’s future standing. According to the Atlantic Council, a whopping 134 nations are currently testing their digital currencies, with 66 in advanced stages. Some analysts believe that we could see CBDCs becoming mainstream by 2027, presenting another formidable challenge to the USD. For more on these developments, see the full article on watcher.guru.