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Showing posts with the label de-dollarization

Curb On De-Dollarization As Chinese Investors Expect Yuan Dip

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Chinese investors are anticipating the yuan to dip as tensions around US tariffs continue. There has been a rise in foreign exchange deposits at banks and currency swaps, move which hints at investors anticipating a dip in the yuan’s value. The development could lead to curbs on the de-dollarization movement. Yuan Gains Against The US Dollar Source: Reuters / Jason Lee / Illustration Chinese investors expect the yuan to hold steady against the US dollar for now before facing a dip. Even more, People’s Bank of China (PBOC) is in a dilemma. A sudden movement of the yuan could lead to businesses and households selling billions of dollars. The move could be motivated by opportunities “ to catch better yuan levels or to stave off losses .” Such a development could stress China’s de-dollarization motives. The country has spearheaded the move away from the greenback over the last decade. The yuan has gained 1.5% against the US dollar since April 2 of this year. Th...

BlackRock Says Surging US Debt Could Fuel De-Dollarization

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According to a Reuters report of BlackRock’s Q3 fixed income outlook note, the world’s largest asset manager is concerned about the rising US government debt. The financial institution believes that the surging debt could drain investor interest in US long-dated treasuries and the US dollar. Investors could instead look outside the US for investment opportunities. Also Read: BRICS: 50+ Nations Now Use Yuan, Rupee, Ruble, Not US Dollar in Trade De-Dollarization May Gain As US Debt Rises Source: Watcher.Guru According to BlackRock’s fixed income executives, de-dollarization risks could increase due to rising government debt. According to the report, “ We’ve been highlighting the precarious position of the US government’s indebtedness for some time now, and, if left unchecked, we view debt as the single greatest risk to the ‘special status’ of the US in financial markets. “ President Trump’s tariffs have led to substantial market fluctuations...

Goodbye US Dollar: 8 Nations Opt For Chinese Yuan Amid De-Dollarization

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The de-dollarization agenda is now gaining worldwide traction as the US dollar keeps displaying significant price volatility. The regular fluctuations encountered by the American currency are leading the world to explore capable alternatives to the US dollar, with a special focus shifting towards currencies such as the euro and Chinese yuan. This development is gaining momentum due to the fiery trade policies that US President Donald Trump has initiated in recent times. The rising trade war fears, coupled with the nations putting counter tariffs on the US, pushed investors to dump the US dollar, adopting alternatives like the yuan to perform cross-border transactions. Also Read: Goldman Bets $1.4B on Blackrock’s Bitcoin ETF: 516 Trillion SHIB Set to Be Hit De-Dollarization Gains Steam: What’s Happening Source: Watcher Guru The financial market is now getting ready to embrace a new change. This change is marked with the rise of the multipolar currency world, where other currencies ...

BRICS: Asia Could Dump $2.5 Trillion Worth of US Dollar Currency

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The US dollar may face a huge crisis from BRICS and other Asian currencies, as Stephen Jen, CEO of Eurizon SLJ Capital, revealed to Bloomberg that an “avalanche” of selling the USD worth $2.5 trillion could come from Asian countries. He revealed that Asian exporters and investors have stockpiled a large sum of USD over the years that could soon be dumped as the greenback is weakening against local currencies in 2025. The Bloomberg currency index shows that the USD is down 8% since February, while local currencies are outperforming the reserve currency. This gives the BRICS alliance more power to initiate the de-dollarization agenda as $2.5 trillion worth of US dollar hangs on a thread. “We suspect these dollar hoardings by Asian exporters and institutional investors may be extremely large. Possibly on the order of $2.5 trillion or so. And pose sharp downside risks to the dollar vis-à-vis these Asian currencies,” Jen and Joana Freire wrote. BRICS: US Dollar Faces a Threat of $2.5 Tril...

Trump's Tariffs Trigger Global Rush to Abandon U.S. Dollar

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The abandoning U.S. dollar trend has recently gained momentum following Trump’s tariffs on global imports. Financial markets have responded with alarm as the U.S. Dollar Index has actually dropped to its lowest levels since the presidential election, and has fallen nearly six percent since early 2025. This shift in currency dynamics is now raising serious questions about the future dominance of the U.S. dollar in international trade and finance. Also Read: Top 3 Cryptocurrencies To Watch This Week How Trump’s Tariffs Accelerate the Abandonment of the U.S. Dollar in Global Trade Source: Reuters Market Reactions Show Dollar Decline The dollar has been falling against most major currencies after the reciprocal tariffs were implemented last week. At the time of writing, the U.S. Dollar Index has dropped below 102 points twice last week, hitting its lowest post-election levels. The growing abandon U.S. dollar concerns have intensified especially after last Thursday’s 1.7 pe...

BRICS: US Dollar Keeps Falling as Trade War Fears Grow

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The growing geopolitical tensions have only intensified in recent weeks amid the United States’ new Liberation Day tariff plan. Although it has been scaled back in a myriad of ways, the nation’s currency appears to be paying the price. In an interesting turn for the BRICS bloc, the US dollar has fallen again as trade fears grow. Interestingly, US President Donald Trump had previously threatened the alliance with 150% tariffs due to their de-dollarization endeavors. The warning never actualized, but his stance on their policies was clear. Now, his efforts to balance trade for the nation have effectively done similar to the global reserve asset. Source: The New York Times Also Read: BRICS Launches Initiative for International Payments System US Dollar Struggles as Trade Fears Look to Benefit BRICS Bloc It has been a rather concerning month for the global economy. US President Trump has ushered in a strong America-first policy in the form of his new tariff plan. Subsequently, i...

BRICS: 8 Strongest Currencies That Rule the World

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The forex market is dynamic with changes occurring every minute of the day’s trade. BRICS is doing everything to topple the US dollar from the world’s reserve status and replace it with local currencies. Despite their best efforts, the de-dollarization agenda is yet to become a reality as the USD still dominates the financial sector. This puts a major dent in their initiative as the greenback reigns supreme even after multiple attempts to bring it down. Also Read: BRICS: New Country Rejects Local Currency for Oil, Wants US Dollar BRICS: 8 Currencies That Dominate the Financial World Source: euroschoolindia.com Even after BRICS placed local currencies ahead for trade, the US dollar is the most used tender for cross-border transactions. The majority of the world uses it for trade settlements as it sustains the market’s whiplash. The USD does not dramatically head south and is backed by various global economic participants who trust the currency. Below is the list of the...

De-Dollarization: 3 Reasons Why The World Is Ditching The US Dollar

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De-dollarization, otherwise known as the phenomenon that denotes the dumping of the US dollar on a global scale, is now a burning concept running amok among global nations. The concept is now gaining maximum steam, primarily due to the rising narratives that continue to hammer the US dollar’s prestige and valuation. The American currency is now subject to wild allegations, including its growing weaponization and ability to sanction other nations, that are primarily compelling nations to consider shifting away from the dollar. Will the dollar be able to survive this transition? Also Read: JFK Files: His War on Central Banks – Is Bitcoin (BTC) the Answer for CBDCs? Why Is the Dollar Getting Ditched? 1. Geopolitical Risks And A Brewing Trade War Source: Watcher Guru Donald Trump is now the 47th president of the United States. Trump has long proposed the idea of imposing tariffs on nations to bolster the US economy, which is now backfiring in the form of a bubbling trade war. This phenomen...

BRICS: Top Bank Predicts US Dollar Could Lose Global Status

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The BRICS alliance is on a quest to upend the US dollar and replace its dominance with local currencies. The shift towards settling trade in local currencies has been on the rise since the White House pressed sanctions on Russia in 2022. Developing countries are sidelining the US dollar for cross-border transactions and increasingly using local currencies for payment settlements. Also Read: India Officially Dismisses BRICS Currency, Praises the US Dollar Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. The greenback stands at the crossroads of a global change that could deplete its power and control over the world’s financial markets. Such a development could wreak havoc on the American economy leading to a major shift and market collapse. Also Read: BRICS: Nobody Will Trust the US Dollar Again BRICS: Deutsche Bank Predicts US Dollar is On the Losing Side Source: Freepik.com Deutsche Bank wrote in its recent note to stakeholders ...

BRICS: Will Trump Keep Saudi Arabia Out of the Alliance?

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With geopolitical tensions rising, there are two sides establishing themselves. The West, or more notably the United States, and the global south are poised to face off. With economic policy targeting the BRICS bloc, will US President Donald Trump dissuade Saudi Arabia from potentially joining the collective? The Middle Eastern nation has long been connected to the economic alliance. It was invited to join the group in 2023 in an invitation that it had accepted. However, it has since wavered on that and has continued internal discussions on whether or not to align with the group. Now, the question is, has Trump given the nation enough of a reason to steer clear? Also Read: BRICS: Trump Tariff to Trigger Economic Crisis and Diplomatic Disputes? Is Trump Ensuring Saudi Arabia Stays Away From BRICS? There is no denying that geopolitical tensions are reaching a fever pitch. US President Donald Trump has enacted tariffs on a host of nations. Although some have been delayed, he has not spare...

BRICS: Why Experts Say US Dollar's Global Reserve Days May be Numbered

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Amid the ongoing de-dollarization efforts embraced by the BRICS alliance, experts have begun to state that the US dollar’s days as a global reserve asset may be numbered. Although the currency is at a new record high, economists have noted things do not look as promising in the long term. Analysts and experts have gathered at the World Economic Forum in Davos, Switzerland. It was there that US President Donald Trump, inaugurated Monday, noted the United States would be the “world capital” of both AI and crypto. Those efforts may come to fruition, but the nation is clearly losing ground regarding its greenback as the world’s currency. Also Read: BRICS: China Breaks Silence on US Tensions, Trump Tariff Threat US Dollar Dominance Coming to an End? Why Economists Aren’t Keen on Its Long-Term Outlook The geopolitical tensions over the US dollar have reached a fever pitch in recent years. The BRICS alliance has continued to seek ways to promote local currencies i...

BRICS: Economists Warn Trump Threats Are Most Effective De-Dollarization Plan

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Over teh last two years, the BRICS economic alliance has sought to lessen its reliance on the US dollar. Although the previous Biden administration had been content with this going unchecked, that changed drastically with a new President. Yet, his challenge has drawn some criticism. Specifically, amid BRICS opposition, economists have warned that Donald Trump’s 100% tariff threats could be the most effective de-dollarization plan. Prior to his inauguration this week, Trump noted he was looking to retaliate against efforts to lessen the international prominence of the US dollar. “If BRICS nations want to do that, that’s okay,” he said. “But we’re going to put at least a 100% tariff on the business they do in the United States.” Yet, experts have warned that could come with dire ramifications. Source: Reuters / Kevin Lamarque / Pool Also Read: BRICS: China Breaks Silence on US Tensions, Trump Tariff Threat Trump Could Be Greatest Force for De-Doll...