HSBC Reports BRICS Accumulating Gold, Dollar’s Dominance Endures

As BRICS nations actively endeavor to displace the US dollar from its position as the world’s reserve currency, HSBC has made audacious forecasts regarding the greenback’s future. Despite these dedollarization efforts, HSBC analysts assert that the dollar will remain the dominant global currency for the foreseeable future.

HSBC’s Perspective on the US Dollar

HSBC, one of the globe’s leading banking institutions, recently unveiled its projections concerning the US dollar’s future. According to James Steel, Chief Commodities Analyst at HSBC, the dollar is likely to maintain its status as the world’s reserve currency for the next two decades. In an interview with Bloomberg, Steel stated, “We do not believe there will be a loss of sovereignty for the US dollar as the world’s reserve currency for the next 10 to 20 years, for reasons that would require a whole program.”

This assertion surfaces amidst intensifying efforts by BRICS members to minimize their reliance on the US dollar.

BRICS’ Dedollarization Efforts

Since 2022, the central banks of BRICS countries have been adopting a policy of diversifying their reserves, prominently by stockpiling significant quantities of gold. This strategic shift comes as a response to economic sanctions imposed by the United States on Russia following the invasion of Ukraine. The BRICS coalition aims to insulate themselves from US dollar volatility and enhance their economic sovereignty.

Despite the concerted effort to diminish their dollar dependence, HSBC forecasts that these dedollarization strategies might not succeed in supplanting the greenback. The current local currencies of BRICS nations are not yet equipped to match the stability and global trust vested in the US dollar. Steel suggested that “dedollarization by the BRICS may not achieve its objectives, as the dollar remains a safe haven in times of economic uncertainty.”

Luc Jose A.

Graduated from Sciences Po Toulouse with a blockchain consultant certification from Alyra, I joined Cointribune in 2019. Convinced of blockchain’s potential to revolutionize various economic sectors, I am committed to raising awareness and providing insightful information about this constantly evolving ecosystem. My goal is to help everyone better understand blockchain and seize the opportunities it offers. I strive daily to deliver an objective analysis of current events, decipher market trends, relay the latest technological innovations, and contextualize the economic and societal stakes of this ongoing revolution.

Source: CoinTribune