The latest report from the Economic Times indicates that demand for the US dollar is rising in foreign banks despite the BRICS alliance aggressively pushing the de-dollarization agenda. The US dollar is gaining strength in the currency market as the DXY index reached an all-time high of 107.06. However, the USD is cooling down after hitting a peak and is currently trading at 106.55.
Also Read: BRICS Countries Gain Influence Over G20
The BRICS agenda of toppling the US dollar is failing as their local currencies are reaching all-time lows. The Indian rupee has fallen to its lowest price point of 84.47 this week as the USD is strengthening in the charts. Even the RBI intervention failed to save the Indian rupee from crashing. The Chinese yuan has also fallen to a seven-month low against the greenback.
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BRICS: US Dollar Gains Demand in the Currency Market
The deprecation of local currencies is making foreign banks accumulate the US dollar in their reserves. The US dollar is delivering higher yields compared to the local currencies of the BRICS countries. In addition, President-elect Trump has vowed to protect the USD from damages initiated by emerging economies.
Also Read: Trump Advancing to Fracture & Dismantle BRICS
The 100% trade tariff is just one of the other policies he would initiate to protect the greenback. The latest report suggests that Trump is aiming to destabilize the BRICS alliance and dismantle the de-dollarization agenda. “He will strive to fracture BRICS, to dismantle the emerging multipolar world order. He will do so with greater determination and more effectively than the previous administration,” said analyst Boris Mezhuyev.
The analyst explained that Trump will aggressively fight back against BRICS and keep the US dollar intact. “This non-Western world would be taken down. This is what Trump’s strategy will look like. He will seek to fragment the world majority, to upset the emerging unity. Everything else is a matter of tactics,” he summed it up.