Τhe BRICS alliance has aimed to dethrone the US dollar from the international market and make local currencies dominate. Developing countries are steadily and systematically seeking to break ties with the US dollar and strengthen their domestic economies by putting their local currencies ahead. In this light and from the US side, the change in the geopolitical establishment is worrying, as the East is also trying to overthrow the American dominance in the financial sector.

The East wants (and to some extent is forced) to break free from the clutches of the US dollar, as its economies are affected by the astronomical and ever-growing US debt of 34.4 trillion dollars! A debt that, all serious American economists admit it will be very difficult (if possible) for the US to reduce.

In addition, a possible (and not at all unlikely) recession in the US will directly affect their economies, since most of their reserves consist of dollars. Therefore, the BRICS are trying to protect themselves and convince other countries to end dependence on the US dollar and embrace local currencies for cross-border transactions.

The BRICS also intend to launch a new currency in the markets and support trade with each other. This implementation is in its initial stages and still has a long way to go until the final configuration of the currency. However, one thing is certain, the BRICS currency is targeting the US dollar to dethrone it as a global reserve currency .

When a BRICS currency comes into use, the US dollar will face challenges, initially in three different directions and will be affected in the ways listed below:

• The “supply and demand” for the US dollar will decrease in international economics
• The dollar’s position as the world’s reserve currency will begin to be questioned
• Government currencies will strengthen and weaken the US dollar in foreign exchange markets

The BRICS alliance aims to uproot the global supremacy of the US dollar by promoting local currencies for trade-economic agreements and trade settlements. The BRICS also want to strengthen their domestic economies by severing ties to the US dollar for cross-border trade. Officials from the BRICS alliance, tasked with implementing the plan, are on an ongoing global tour persuading developing countries to use local currencies for trade rather than the US dollar.

The development will affect several serious financial sectors in America, leading to a market decline in the coming years. If the BRICS abandon the dollar for trade, the USD currency will return home, leading to hyperinflation in the US.

A total of three key financial sectors in the US will take a direct hit when the BRICS abandon the dollar. Sectors that will be hit and start to decline include banking, foreign exchange, tourism and consumer goods and manufacturing.

1. Banking and Finance
2. Industry and Technology services
3. Consumer goods and trade

First of all, the banking and financial sector will be hit the hardest as foreign currencies will start to depreciate. Foreign exchange markets operate on the basis of supply and demand, and if demand for the dollar declines, the US Federal Reserve will find it difficult to support the dollar.

If the central banks of the BRICS countries do not accumulate dollar, the US will see its currency return home. Furthermore, the US has for years been “exporting” its inflation to other nations, and the return of the currency will inevitably lead to hyperinflation in America.

The other sector that will be hit hardest is the technology sector as traditionally, inflation in the US leads to job losses. In addition, multinational companies should allocate a lot of capital to keep the business alive and not to stay on top, but trying not to sink.

Finally, consumer goods in the retail sector will see their prices skyrocket. Also, inflation will dominate the markets resulting in the prices of everyday goods becoming expensive and uncompetitive, triggering a consumer crisis with serious consequences.

It is now clear that the BRICS can gradually bring down the US economy when they create currency and stop accepting the dollar for payments.

At first reading, one could say that the BRICS are waging an economic war against the US. But it is the Americans themselves who set their currency as a target when, after imposing it in every way as an international and reserve currency. Then driven by greed, they inflated the dollar so much that now other countries are forced to get rid of it.

Normally, the Biden administration should have acted quickly to counter or curb the BRICS countries and stop the dollar from falling. But such is the character of this American government, like most of them in recent decades, that this prohibits them.

The US has become accustomed to economic intemperance and thus created self-destructive debt, in its attempt to finance the destruction of other economies… The US has become addicted to gunboats economic policy and de-power “allies”.

This is common knowledge in the “international alliance exchange” and has brought the USA’s alliance and moral value, very low.