The De-Dollarization Revolution

In summary, the efforts by the BRICS nations to utilize their domestic currencies for global trade could pose long-term effects on the United States' economy. BRICS now controls 42% of the oil supply while consuming only 30%. This allows them not to be dependent on the Petro Dollar and bilateral trades can now occur outside the dollar, which will lead to the immense depreciation of the value of the dollar. On 8/16/23, India purchased a million barrels of crude from UAE payment for this purchase was made in Indian rupees. Bilateral trades outside the dollar are happening. Countries will now diversify their currency reserves away from the dollar which will also weaken the dollar. This will cause gold to serve as a hedge and store of value driving up the gold price, possibly dramatically. Central Banks have been buying gold at the fastest pace in 55 years . They have been front running this ongoing move of de-dollarization from the BRICS nations and the world. “BRICS Currency is coming. Whether or not it is a gold-backed currency that is introduced in a few weeks or a few months, or next year,” According to the IMF, the bloc will collectively account for 32.1 percent of global GDP this year. That’s up from just 16.9 percent in 1995 and more than the G7’s share of 29.9 percent.