Analyst Envisions Shift from U.S. Dollar Dominance Amidst Emerging Global Realignment
A think tank analyst predicts the potential end of U.S. dollar dominance, attributing it to countries positioning themselves for a new global system.
The analyst notes that diminishing reliance on the dollar could lead central banks to divest their dollar reserves, causing hyperinflation, heightened interest rates to counter purchasing power loss, and declining asset values. The opinion piece, titled “De-dollarization: shifting power between the US and BRICS,” authored by Michael Roach for the Lowy Institute, outlines significant developments supporting this view.
These include the Saudi Arabia-Russia military agreement, discussions on trading in non-dollar currencies, and efforts by the BRICS nations to create an international reserve currency, possibly backed by gold. The analyst highlights historical precedents of shifts in global order, suggesting that the era of BRICS influence might be on the horizon.
Clever Robot News Desk 10th August 2023
