In the latest Money Metals Midweek Memo podcast, host Mike Maharrey analyzed recent developments in global currency and trade dynamics, particularly as they relate to BRICS countries’ increasing moves toward de-dollarization.
From symbolic events to hard-hitting economic discussions, Maharrey covered the potential implications for the U.S. dollar as the world’s reserve currency and examined how central banks are preparing for these shifts.
Treasury Secretary Yellen’s Symbolic Moment
The podcast opened with a moment Maharrey found rich in symbolism: during a press briefing, the U.S. Treasury Department seal fell from the podium as Secretary Janet Yellen answered questions about the dollar’s future as the global reserve currency. This seemingly minor incident underscored the growing sentiment that the dollar’s stability may be increasingly precarious.
BRICS Expands: Dollarization and De-dollarization
The BRICS nations—Brazil, Russia, India, China, and South Africa—recently held a summit in Kazan, Russia, where the conversation centered on potential alternatives to the dollar. The alliance expanded on January 1, 2024, to include Egypt, the UAE, Iran, and Ethiopia, with Turkey, Azerbaijan, and Malaysia also applying for membership.
Despite these expansions and talks of creating an independent payment system, Maharrey noted that true de-dollarization among BRICS remains challenging, with China, India, and others still deeply reliant on the global dollar system.
Russia’s Push for an Independent System
As one of the most vocal proponents of dollar alternatives, Russia has been advocating for a BRICS payment system that would circumvent the SWIFT network, which it was locked out of following the Ukraine invasion.
The summit discussions included “BRICS Clear,” an initiative for an independent cross-border settlement system, but Maharrey emphasized that creating such a system is far from straightforward.
Full article: U.S. dollar faces new challenges amid brics push for de-dollarization