BRICS (Part II): Threat to the U.S. Dollar Overblown

The dollar is being challenged given the overwhelming and unsustainable debt burden of the United States. However, even if the petrodollar has been retried, the U.S. dollar is pegged to the Saudi riyal, and Saudi Arabia is the development partner of the World Bank, an institution through which the United States wields financial influence on behalf the financial district of the City of London. Saudi Arabia has committed to BRICS.

Can you follow the bouncing ball? The world is still in the same court, just that the referees and players have changed, like musical chairs.

The Royal Institute of International Affairs (RIIA), which advances global policy on behalf of the financial district of the City of London writes in World Today: “there is only one issue on which all BRICS+ members can easily converge: namely, their common desire to erode the role of the dollar in the international financial system, whose continued dominance is reflected in the fact that three fifths of the world’s foreign exchange reserves are still made up of greenbacks.”

The journal then clarifies: “escaping dollar dominance is often linked to (limiting) its weaponization as Washington increasingly relies on sanctions as a tool of geopolitical coercion.”