BRICS Nations Eye $2.5 Trillion Dollar Dump—Asia’s Bold Move to De-Dollarize
The US dollar’s dominance faces a seismic threat as BRICS economies—led by Asian powerhouses—plot a $2.5 trillion exodus from greenback reserves. Here’s why the financial establishment should sweat.
De-Dollarization Goes Nuclear
Forget gradual shifts. China, India, and allies are accelerating efforts to sideline the dollar in trade settlements and reserve holdings. Gold, yuan, and even crypto are on the menu as alternatives.
The Domino Effect
If executed, this could trigger a liquidity crunch in Treasury markets and force the Fed into even more creative accounting—because ’transitory inflation’ worked out so well last time.
Wall Street’s Worst Nightmare: A world where petrodollars aren’t the only game in town. Buckle up.
BRICS: US Dollar Faces a Threat of $2.5 Trillion Sell-off
BRICS and other developing countries are now in a position where their economies can afford to offload the US dollar. There is ansaid Jen. The long-term appeal of the USD is getting minimized as local currencies now seem more lucrative. It does not carry the burden of debt and strengthens each other’s GDP when two nations transact.
Apart from BRICS, de-dollarization is growing in countries like Taiwan, Malaysia, and Vietnam, where the US dollar is becoming secondary. Jen also explained that Asian countries have external surpluses, which they can hedge against the US dollar fluctuations. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar completely. The American economy is at the crossroads of a global paradigm shift where its power is on the decline.