BRICS: US Dollar Hits 2-Year High as De-Dollarization is Failing
Despite the ongoing efforts to decrease global dependency on the BRICS alliance, the US dollar has continued to thrive, reaching a 2-year high amid ongoing de-dollarization efforts. Indeed, the Western currency has seen Treasury yields rise to their highest mark since the latter months of 2023, according to a Financial Times report.
2024 ended with the US economy headed straight toward the Federal Reserve’s 2% target. Moreover, it has become one of the most impressive recoveries from its 40-year high inflation mark it reached post-pandemic. What’s even more impressive is that the growth has taken place amid the ongoing calls to end the dominance of the greenback on a global scale.
BRICS Don’t Stand a Chance to Surging Dollar as Pivotal 2025 Comes Into View
With the arrival of Western sanctions in 2022, the BRICS economic alliance has sought to challenge the global status quo. Indeed, the bloc has called on the global south to embrace the promotion of local currencies. Moreover, they have sought to limit the power of Western economics and therefore the power of sanctions.
Yet, two years into the campaign, it has failed to make a significant impact. Indeed, the BRICS collective appears to stand no chance, as the US dollar has hit two-year highs amid ongoing de-dollarization efforts. Even more interesting, experts project the greenback to continue growing.
Specifically, Goldman Sachs has upgraded its US dollar forecasts. Indeed, they note that a surging US economy and potential tariffs should provide easing to the country’s currency. Ultimately, they expect the arrival of US President-elect Trump to be a good thing for the dollar.
“We expect the dollar to rally by about 5% over the coming year on the realization of new tariffs and continued US outperformance,” analyst Kamakshya Trivedi wrote. “We still see the risk tilted towards more dollar strength,” they added, regarding the forecast upgrade.
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