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BRICS strategy: Will the dollar soon be history in the region?
BRICS countries call for move away from US dollar for trade to strengthen local currencies; Influence on global markets is growing.
BRICS strategy: Will the dollar soon be history in the region?
The global financial war is gathering pace! A number of countries are betting on ditching the US dollar, inspired by the BRICS alliance. China, Russia and Iran are the driving forces behind this de-dollarization offensive. Their goal: Local currencies should displace the US dollar in cross-border transactions. This move – a potential cudgel for the greenback – could dramatically change the entire supply and demand dynamic. The US government is desperately struggling to exert influence on this growing movement.
Diversification is on the agenda! The central banks of BRICS and other developing countries are restructuring their reserves away from the dollar and towards a multi-currency portfolio that demands respect on the global stage. "China, as an economic giant, is making its mark by expanding the power of its yuan globally," Cedric Chehab of Fitch Solutions tells CNBC. This tightening of the screws could revolutionize opportunities for exporters and importers, balancing risks, optimizing investment opportunities and making revenue more predictable. Former Brazilian ambassador to China Marcos Caramuru describes this currency change as a stepping stone to the next league of global trade. This development reports watcher.guru, as the world wonders what the consequences will be for the dollar's supremacy.