3 US Sectors To Be Affected If BRICS Ditches the Dollar For Trade

The 16th BRICS summit took place in the Kazan region of Russia this week with the participation of 40 countries in the event. The summit saw major changes with new policies, announcements, and trade deals taking place. The mock-up of a BRICS currency was gifted to Russian President Vladimir Putin indicating that the alliance is aiming to challenge the US dollar. If the new BRICS currency becomes a reality, several major sectors in the US will be severely affected.

Also Read: Goldman Sachs Predicts the Future of BRICS Currency

The bloc wants to use the new common currency or local currencies for trade and completely ditch the US dollar. In this article, we will highlight the top 3 major US sectors that will be severely affected if BRICS ditches the dollar for trade.

Also Read: The Gloves Are Off: BRICS Is Officially Challenging the US Dollar

Launch of BRICS Currency Could Majorly Affect 3 US Sectors

us dollar bill faces
Source: realmoney.thestreet.com

A total of 3 US sectors could be seriously affected if BRICS stops using the dollar for trade and transactions. The sectors include the entire financial system dominated by the West, investment banks, trade, and daily essentials across America. The major US financial sectors that could be impacted by the formation of a new BRICS currency are:

  1. Banking and finance
  2. International Trade and Investment
  3. Consumer goods and retail

Also Read: Western Leaders React to BRICS 2024 Summit

The banking and finance systems are dominated by the US and the East plays under the rules of the West. If the BRICS currency gains strength, the US will lose control of the global hegemony that the dollar enjoys. This would make the banking system in America unstable as the USD will find no takers overseas.

The second sector to be hit will be the international trade and investments. BRICS could rewrite trade to suit their agenda and use the new currency for cross-border transactions. Therefore, investments in the US dollar will dry up leading to a deficit of the currency. The USD runs on a supply and demand mechanism, and if the demand fails, the situation will lead to hyperinflation.

Also Read: BRICS De-Dollarization Begins: 40 Countries Attend 2024 Summit

Here, we come to the third point which is consumer goods and retail. If the economy enters the hyperinflation phase, the cost of day-to-day essentials will automatically skyrocket. The development will lead to job cuts and make life unaffordable for the average American. The greenback is currently in the crosshairs of a major financial shift that could be dominated by the East. Therefore, the BRICS currency is a risk to these three US sectors and the dollar.

  • BRICS
  • BRICS Currency
  • US DOLLAR

Comments

Post a Comment

Popular posts from this blog

Is $200 Within Reach For Solana Price? Here’s Why This Blockchain Firm Thinks So

Image
Like the general crypto market, the price of Solana (SOL) witnessed significant growth over the past week. According to the latest on-chain data, this might only be the beginning for SOL’s price, with several indications of further upside potential for the altcoin. What’s Behind Solana’s Recent Price Climb? In a new report, blockchain intelligence firm Santiment offered insight into the recent price of Solana. According to the analytics platform, the price of SOL has swung upward by more than 33% since the 4th of July, rewarding investors who continued to bet big on it despite the sluggish market conditions. Related Reading Crypto Market Rebounds From Lows, But Why Are Cardano Holders Suffering Losses? 19 hours ago Santiment mentioned that this positive run of form displayed by the altcoin over the past two weeks can be linked to investo...
Read more

Bitcoin Ordinals marketplace Bioniq launches on ICP

Bioniq, a new market place for Bitcoin Ordinals, introduces a distinctive approach by operating on the Internet Computer (ICP) blockchain. The introduction of Bioniq, a Bitcoin Ordinals market place, marks a notable development in the evolving landscape of cryptocurrency. Distinctively, Bioniq operates on the Internet Computer (ICP) blockchain, a platform developed by Dfinity, rather than directly on Bitcoin. This approach positions ICP as a type of layer-2 network for Bitcoin, a significant deviation from traditional practices in this space. Hello world! We're an experienced team of Web3 developers bringing you the worlds greatest trading experience for ordinal NFTs Send, receive, inscribe, buy, sell, swap, trade, auction, offer, and collateralize all in the works Can't wait to show you what we are building — bioniq (@bioniqMarket) February 28, 2023 Bioniq claims to offer several benefits including being the “world’s fastest” market place for Bitco...
Read more

Solana Trades Above $18 As Sellers Signal A Return To The Downtrend

Image
Mar 13, 2023 at 08:13 // Price Author Coin Idol Solana (SOL) is trading at a high of $18.84. The cryptocurrency value is rising again as it leaves the negative trend area. Solana price long term forecast: bearish The cryptocurrency price will cross the moving average lines and the $20 resistance level if the bullish momentum continues. The recent price rally becomes conceivable if the down trend reaches the historically significant price level of November 10, 2022. The historical price level is the current support level when the altcoin rises again....
Read more