Does The New BRICS Reserve Currency Spell Doom For The USD?
Our financial system has officially changed for forever in 2023, following the announcement of the ‘’BRICS’’ nations, declaring they have began creating a new global reserve currency.
Many people are claiming this move by the BRICS will destroy the petrodollar system, and bring about the doom of the US Dollar, resulting in the USA losing their global reserve currency status.
These nations, Brazil, Russia India, China and South Africa have had enough of the US Dollars exorbitant privilege, and their challenge to the Dollars hegemony should NOT be underestimated considering they control……
40% of the worlds population.
Over 50% of the worlds commodities, and most importantly, the BRICS countries have just recently surpassed the G7 in terms of GDP, showing they now hold the economic majority of the world.
What’s even worse for the West and the US is, is that these BRICS countries are not alone!
Over 25 other countries are expressing interest, or have formally applied to become apart of the BRICS coalition.
This is unprecedented and noteworthy, because for the first 12 years of the BRICS existence, there wasn’t an incredible amount of interest from other countries in wanting to join the BRICS.
However, in 2022 when they announced they were building a new reserve currency, other countries around the world saw a viable alternative to the US Dollar based financial system.
Not only are countries talking about joining BRICS, but their backing up their talk with their wallets.
Looking at the treasury reserves of countries around the world, we can see they’re now dumping US Dollars from their treasury reserves, and actively looking to accumulate assets other than the Dollar.
We can see that US Dollars in the reserves of Central Banks all around the world has been steadily decreasing since the early 2000s.
Countries around the world have been diversifying out of the US Dollar since the 2008 GFC.
We can see that central banks have also been accumulating record amounts of gold since the 2008 global financial crisis.
Central banks have actually bought more gold between 2008-2023, than they bought between the 1980-2008 era.
However, it’s not all bad news for the Dollar, as it still facilitates over 85% of global trade.
Will a new BRICS currency help the world reduce their dependency on the Dollar?
The answer to that question is unknown at this stage, but one is for sure.
Today’s anti-dollar movement is far stronger than previous attempts.
I believe there are 3 very important nails, that are today, being driven into the coffin of the petrodollar system.
Saudi Arabia, the country that the Petrodollar system was built upon, is now selling its precious oil in other currencies like the Chinese Yuan.
In an interesting turn of events, the US doesn’t appear to be too impressed with the recent decision of the Saudis to ditch the US Dollar.
Secondly, China is currently expanding trade relations with countries all around the world, in their attempts to spread the usage of the Chinese Yuan.
The third big nail being drilled into the Petrodollar systems coffin is one of betrayal! The US has just been betrayed by one of it’s closest allies this week as Japan IGNORED the Wests sanctions on Russia, and resorted to buying oil from Russia.
Determining what will be the next geopolitical domino to fall in the world is impossible.
However, one thing is for sure, the world we’ve moved into, is one that’s diametrically opposed to one we’ve been living in since WW2.
Global peace and cooperation appears to be breaking down, and so is the petrodollar agreement.
However, the main point I want to make here. Just because the petrodollar breaks down, this doesn’t automatically mean the US Dollar loses its global reserve status, and hyperinflates.
The world has been slowly de-dollarizing since 2009, and we can see clearly that the DXY has actually increased!
Who says the mighty US empire, (arguable the greatest ever) doesn’t have a few wildcards stuffed up their sleeve…..
You can watch the full video that I recorded on this topic earlier today…. AND….
Now for my in-depth analysis of the situation….
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