US Allies Focusing on Reducing Dollar Reliance: BRICS

BRICS and a handful of developing countries are reducing the US dollar intake in their respective Central Banks’ reserves.

News ID: ۸۲۴۴۲۲

11 February 2024

EghtesadOnline: The US prints trillions of the US currency and disburses them around the world importing its inflation to other countries. Developing nations and BRICS countries bear the risk of debt and fund the US deficit by keeping the dollar in their reserves.

If other nations stop hoarding the dollar, the currency will return to America leading to a deficit in the homeland.

While BRICS is limiting the dollar intake in their reserves, even US allies are now slowly following in their footsteps. The main concern to US allies is the mounting $34 trillion debt crisis that’s spiraling out of control. The $34 trillion debt will only hurt other countries who keep the US dollar in their Central Banks, watcher.guru reported.

After BRICS, US ally France is the first country to voice its concern about the dollar’s uncontrolled debt. French President Emmanuel Macron spoke with a sharp tongue criticizing the US dollar’s role in controlling other countries. Macron even urged in a speech calling Europe and other US allies to limit the usage of the dollar.

He (Macron) warned that increasing the dollar in Central Banks could push the European economy head south, the report added. / Tasnim