Global De-Dollarization Gains Momentum Following Fitch’s Rating Cut
Fitch’s downgrade of the U.S. rating from AAA to AA+ has prompted economists to underscore potential repercussions on the dollar.
Ming Ming, chief economist at Citic Securities, anticipates the move could expedite global de-dollarization amid the complex geopolitical landscape. Meanwhile, the White House and Treasury Secretary Janet Yellen contest the decision, branding it “arbitrary” and “based on outdated data.” Notably, nations worldwide are actively reducing reliance on the U.S. dollar due to its weaponization, with BRICS countries leading this shift.
Zhixin Investment’s chief economist, Lian Ping, emphasized the significant adverse impact of U.S. monetary policy on the global economy, suggesting Fitch’s downgrade might signify the gradual decline of the U.S. dollar system. The topic is expected to feature prominently in the upcoming BRICS leaders’ summit.
Clever Robot News Desk 7th August 2023
