In an opinion piece published by Foreign Policy, former White House economist Joseph Sullivan said, “If BRICS uses its own currency for trade, it will end the dollar’s hegemony.”
Holders of dollars will see their purchasing power plummet, which is not a good thing for ordinary Americans if the US loses reserve currency status, and the fault will lie with the decades of monetary and fiscal mismanagement made possible by the dollar’s status as a global reserve currency. Earlier
The Reserve Bank of Zimbabwe has announced that Zimbabwe will launch a gold-backed digital currency, dumping the US dollar. Zimbabwe has become the latest country to dump dollar and has decided to issue gold-backed digital currency for “investment purposes with a vesting period of 180 days.” The country’s central bank
According to official reports, the yuan has overtaken the dollar to become the most-used currency in China’s cross-border transactions, with it being used in 48.4% of all such transactions.
The country’s central bank governor said that Indonesia is following the lead of BRICS countries in de-dollarization as it ditches the dollar in favor of its local currency.
With the national debt of the world’s reserve currency soon expected to exceed $32 trillion, some are predicting a potential $20 trillion dollar global financial collapse.
The head of Sonali Bank Limited, Md. Afzal Karim, stated that “Bilateral trade with India in taka and INR will reduce pressure on the US dollar.” As Bangladesh dumps US currency and becomes the 19th country to trade with India with rupees, both nations stand to gain from this.
The graphics below show the timeline of de-dollarization and the countries seeking alternatives to the US dollar.
If the dollar falls, it will be catastrophic for the American people on whose backs 80 years of reserve status were built. It will also subject billions of foreigners, for whom the dollar has meant decades of being bullied, to history’s greatest bait and switch.