“The De-Dollarization Revolution”

The significance of this decision should not be underestimated. The Shanghai Cooperation Organization holds a prominent position as the largest regional military and financial organization globally, covering approximately 60% of the Eurasian landmass and representing 40% of the global GDP. This move indicates a clear shift away from Western influence and closer alignment with influential entities, as observed by an unnamed source. The shift away from the dollar extends beyond the BRICS bloc. If all the emerging alliances, such as the Belt Road Initiative, BRICS, Shanghai Cooperation Organization (SCO), and Eurasian Economic Union, join forces, it would encompass a substantial portion, approximately 85%, of the global population. The source emphasized the magnitude of this development, highlighting the significance of the SCO, which is a political, security, and trade alliance established in 2001. The consortium of BRICS nations is positioning themselves to present substantial competition to the U.S. dollar, with potential ramifications for the American economy. According to an exclusive statement to Watcher Guru by Anil Sooklal, BRICS Ambassador, the group will focus on exploring uses of their domestic currencies and deliberate on alternatives to challenge the dollar during their forthcoming summit. Should the BRICS countries adapt to the usage of their domestic currencies for international transactions, it could lead to a lowered demand for the U.S. dollar. Given that the economies of supply and demand control the dollar, increasing competitiveness from these domestic currencies could trigger shifts in its demand. Such alterations might lead to repercussions on both imports and exports, thus allowing developing countries' currencies to provide competition to the U.S. dollar. If domestic currencies enable cost-effective trading and cheaper imports and exports, the US dollar might be under threat. Such a shift could put American export competitiveness at a disadvantage, potentially pushing businesses to seek more affordable avenues for disseminating goods and services. Additionally, these developing nations might choose to diversify their foreign exchange reserves away from the dollar, which could have implications on the cost of borrowing for the United States. The successful establishment of durable trade partnerships based on domestic currencies by BRICS could curtail the global trade flow of the U.S. dollar.