US Allies Are Downsizing The Dollar in Central Banks

BRICS and a handful of developing countries are reducing the US dollar intake in their respective Central Banks’ reserves. The US prints trillions of USD currency and disburses them around the world importing its inflation to other countries. Developing nations and BRICS countries bear the risk of debt and fund the US deficit by keeping the dollar in their reserves. If other nations stop hoarding the dollar, the currency will return to America leading to a deficit in the homeland.

Also Read: BRICS: US Killing the Dollar With Its Own Hands, Says Putin

While BRICS is limiting the dollar intake in their reserves, even US allies are now slowly following in their footsteps. The main concern to US allies is the mounting $34 trillion debt crisis that’s spiraling out of control. The $34 trillion debt will only hurt other countries who keep the US dollar in their Central Banks. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.

BRICS: US Allies Worried About Mounting Dollar Debt

After BRICS, US ally France is the first country to voice its concern about the dollar’s uncontrolled debt. French President Emmanuel Macron spoke with a sharp tongue criticizing the US dollar’s role in controlling other countries. Macron even urged in a speech calling Europe and other US allies to limit the usage of the dollar. He warned that increasing the dollar in Central Banks could push the European economy head south.

Also Read: BRICS: 8 Banks Ban U.S. Dollar Transactions

European countries have started taking note of France’s warning and evaluating the US dollar’s prospects for trade. A debt crisis will only hurt the EU’s economy and the dollar will be responsible for the debacle.

BRICS, developing countries, and US allies have already begun decreasing the dollar for payment settlements. The US dollar is now used less than 60% of global trade while other currencies are slowly yet steadily rising. The chart below shows that the US dollar is now used for only 58% of global transactions.

Also Read: After Pausing BRICS, Saudi Arabia Signs Deal With US Lockheed Martin

Also Read: BRICS Will End U.S. Dollar Dominance, Says Wall Street

Even Russia’s President Vladimir Putin acknowledged in a recent interview with Tucker Carlson that US allies are looking to move away from the dollar. “Look at what is going on in the world, even the US allies are downsizing the dollar in their reserves,” he said.