The US dollar is facing stiff competition from global currencies and the BRICS alliance is aiming to topple the American Greenback. As the US dollar is battling to survive, other currencies, including BRICS have ganged up against the US dollar.
BRICS is planning to uproot the US dollar’s hegemony by using local currencies for cross-border payments, watcher. guru reported.
In the battle of currencies, the American dollar is most likely to “fall”, predicts a new report from Scotiabank. The forecast indicates that the US dollar will fall the most in 2024 and continue its downward trend thereafter. The development gives ammunition’ to BRICS and other local currencies to replace the US dollar as the world’s reserve.
Scotiabank wrote in its report that the US dollar will find it hard to remain sustainable in the global markets from hereon.
The competition is stiff and more than 20 countries are aiming to bring the US dollar down. The bank wrote that the US dollar spiked 28% in 10 years but might not repeat the feat in the next decade, the report added.