The threat to the US dollar from local currencies remains high as developing countries target the USD.
BRICS: HSBC predicts the outlook for the US dollar
HSBC Securities chief commodity analyst James Steel remains optimistic that the US dollar will dissipate the storm initiated by BRICS. He said in an interview with Bloomberg that the US dollar has not faced any significant challenges except a decline in reserves.
For the uninitiated, the central banks of BRICS and other developing countries have been dumping the US dollar and diversifying their reserves.
Central banks have massively accumulated gold since 2022 after the US imposed sanctions on BRICS member Russia for its invasion of Ukraine. The HSBC analyst explained that BRICS gold accumulation will not affect the outlook for the US dollar. He emphasized that the US dollar will remain the dominant currency even after 20 years.
“We don’t believe there will be any loss of sovereignty for the US dollar as the world’s reserve currency, over the next 10, 20 years, as we see it, for reasons that will full time.” program, you and I can talk about it,” he said.
In short, HSBC has predicted that the US dollar will be the de facto currency even after two to three decades. The BRICS de-dollarization program may fail because the local currency has no chance of beating the US dollar.
