BRICS: Reasons for the Downfall of the U.S. Dollar
The downfall of the U.S. dollar has begun as the BRICS bloc is looking to diminish its global stature. The alliance has taken several initiatives to bring the USD down from the world’s reserve and replace it with local currencies. The anger against the American establishment is growing and emerging economies are paving the way for a new financial system.
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The development puts the American hegemony at risk as it is the crossroads of a global change. So why do BRICS and other emerging economies give the cold shoulder to the U.S. dollar? In this article, we will highlight the top two reasons for the downfall of the U.S. dollar.
BRICS: Why Is the U.S. Dollar Falling Globally?
The U.S. dollar is falling globally due to unruly policies taken by the White House against developing countries. In addition, America’s involvement in endless wars and conflicts also aided in its decline in international trade and commerce. This has given BRICS mileage to take on the U.S. dollar and the de-dollarization agenda is met with appreciation. Below is the top two reasons why the U.S. dollar is falling globally.
Also Read: BRICS: De-Dollarization Is Unstoppable
- Pressing sanctions on developing countries
The U.S. needlessly pressing sanctions on developing countries is the main reason why BRICS kick-started the de-dollarization process. Even U.S. Treasury Secretary Janet Yellen repeatedly said that the White House went too far in this method. The sanctions on Russia were the last nail in the coffin that led to the U.S. dollar being less used globally.
Also Read: BRICS: A World Without the US Dollar, Myth or Reality?
- Geopolitical conflicts and wars
America has taken part in endless wars and conflicts around the world including Iraq, Afghanistan, the and Middle East. It also takes sides on whom they deem ‘good’ and ‘bad’ and acts according to their whims cornering other countries. The geopolitical conflicts have made BRICS and other nations stop aiding the U.S. dollar for cross-border transactions.