The main sector in the US will be affected if BRICS abandons the dollar

The BRICS alliance wants to introduce a gold-backed currency to overthrow the US dollar. The announcement of the creation of a new currency could be revealed at the upcoming summit in October 2024. The BRICS goal is to create a multipolar financial world in which developing countries will reduce their link to the US dollar.

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Global trade will be settled mostly in the new BRICS gold-backed currency or in the local currencies of other developing countries. This would help them protect their domestic economies, since hoarding the US dollar in reserves carries risks. The growing US debt reached $34.4 trillion this month, and developing countries are keen to distance themselves from the dollar.

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BRICS: US Financial Core Will Suffer If Dollar Abandoned

The main US sector that will suffer if BRICS abandons the dollar is the banking and finance sector. Banks across America will be forced to take specific measures to secure the US dollar’s ​​prospects. In addition, new currency pairs could take center stage in the forex market, putting more pressure on the US dollar.

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In addition, banks are lending millions of dollars worldwide, and the amount being paid out may be significantly reduced. As such, the US dollar will experience a weakening of the supply and demand mechanism, and banks will be the first to feel the impact of BRICS de-dollarization initiatives. US banks have already plunged into crisis, and several banks are facing closure and bankruptcy since 2020.

If the banking sector suffers the first blow, the next one will inadvertently be the U.S. financial sector. The financial sector is broad and includes consumer goods and retail, technology and fintech, among others. Even inflation could hit the U.S. homeland, causing prices for everyday necessities to peak. BRICS abandoning the dollar in favor of global trade and transactions will begin to have a negative impact on the US economy, and everyday life in America will be affected.