By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Markets > Forex > Dollar unlikely to lose global dominance soon even as BRICS expand – note
Forex

Dollar unlikely to lose global dominance soon even as BRICS expand – note

News Room
Last updated: 2023/09/01 at 5:57 AM
By News Room
Share
2 Min Read
SHARE

LONDON (Reuters) – The dollar is unlikely to lose its status as the global reserve currency anytime soon, even as the expansion of the BRICS group of developing nations signals another challenge to the dollar’s dominance in the world economy, BNY Mellon (NYSE:) said in a note.

Leaders of the BRICS – Brazil, Russia, India, China and South Africa – invited Iran and Argentina, Saudi Arabia, the United Arab Emirates (UAE), Ethiopia and Egypt into the club at a summit last week in Johannesburg.

One of the objectives of the BRICS is to find an alternative to the dollar, BNY noted in a report published on Friday.

It said that the additions of Iran, the UAE, Egypt and Saudi Arabia will make the new group a heavyweight in energy exports – particularly oil – suggesting a commodity basket backed by gold and oil could emerge from the new group.

An expanded bloc would hold 75% of the world’s manganese, 50% of the globe’s graphite, 28% of the world’s nickel, and 10% of . Adding Saudi Arabia, the UAE, and Iran, to the BRICS meanwhile would include three of the world’s largest oil exporters and make up 42% of global oil supply.

Still, BNY Mellon added this would not be enough to challenge the dollar’s dominance.

“The USD is unlikely to lose its global reserve status anytime soon – new currency unions should look to technology or green baskets, rather than gold- or carbon-based ones,” said Bob Savage, head of markets, strategy and insights at BNY Mellon wrote.

“The inclusion of the UAE and Saudi Arabia lift the per capita GDP and economic power, but likely conflicts with longer-term issues about the energy transition from carbon to sustainable sources,” Savage said.

“We think the most important factor for dollar use into the next decade revolves around technology instead – specifically high-end computer chips,” he added.

Read the full article here

News Room September 1, 2023 September 1, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Trump’s ‘big, beautiful’ budget is spooking investors

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Investors shift away from US bond market on fears over Donald Trump’s policies

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Generative AI models are skilled in the art of bullshit

Stay informed with free updatesSimply sign up to the Artificial intelligence myFT…

Trump pushes EU to cut tariffs or face extra duties

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

US-China trade war is pushing Asian nations to pick sides, ministers warn

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

- Advertisement -
Ad imageAd image

You Might Also Like

Forex

Thailand’s weakening baht not all bad for economy – PM

By News Room
Forex

Sterling hits multi-month low, Fed holds rates steady amid inflation concerns

By News Room
Forex

Dollar index on verge of forming bullish ‘golden cross’ – BofA

By News Room
Forex

Japan warns against post-Fed yen slide

By News Room
Forex

Asian currencies stumble amid rising U.S. dollar and hawkish Federal Reserve stance

By News Room
Forex

Asian currencies under pressure due to Federal Reserve’s stance, says HSBC

By News Room
Forex

Dollar rallies, yen under pressure ahead of BOJ rate decision

By News Room
Forex

Gambia’s dalasi remains Africa’s strongest currency amid tourism and remittance inflows

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?