BRICS and Allies Solidify Irreversible Stance Against US Dollar, According to an Expert Investor
According to investment expert Matthew Piepenburg, countries worldwide are pursuing a definitive agenda to distance themselves from reliance on the US dollar.
In an interview at the Deutsche Goldmesse conference with the Soar Financially YouTube channel, Piepenburg, who is a partner at Matterhorn Asset Management, focused on emerging markets. He states that major economies are actively attempting to move away from the dominance of the dollar.
The actions of the US Federal Reserve, such as raising interest rates, have led nations like China and Russia to explore alternative settlement systems that are not reliant on the USD. Piepenburg suggests that in addition to China and Russia, 41 other countries are following suit, potentially driven by concerns over the US’s treatment of Russia during the Ukraine conflict.
The rising value of the dollar, due to Powell’s rate hikes, places a greater burden on the rest of the world, leading them to break away from its dominance. Piepenburg highlights Asia, particularly China, and Russia, as prominent countries leading this divergence. They are also encouraging 41 other nations to conduct trade settlements outside of the US dollar.
The dollar’s weaponization and the threat to the petrodollar market and its demand have further strained relations. The US’s actions, such as removing Russia from the STR and SWIFT and freezing its FX reserves, have caused other countries to reconsider their reliance on the dollar and explore alternatives.
READ MORE: US Dollar Supremacy: Chamath Palihapitiya Sheds Light on Global Currency Reliance
The BRICS coalition, which includes Brazil, Russia, India, China, and South Africa, is discussing the creation of a global currency that does not utilize the US dollar. Numerous nations, including Saudi Arabia, Iran, Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia, and two unnamed countries from East Africa and one from West Africa, are reportedly interested in joining this initiative.
Piepenburg believes that although the yuan or any other currency may not replace the dollar as the world’s reserve currency in the near future, there is a clear trend of countries worldwide gradually moving away from the dollar as their primary trusted medium of trade.
In summary, there is an undeniable global shift away from relying on the US dollar for trade and economic transactions. Countries are actively seeking alternative settlement systems and exploring the possibility of a global currency not tied to the dollar. This trend is deemed irreversible by Piepenburg.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
