BRICS' $5 Billion Crypto Exports: A Threat to US Dollar in 2024?

• BRICS' Commitment to De-Dollarization and its Effect on US Dollars
• Leading Export Nations of 2022 and the Changing Global Perspective
• BRICS' Continuous Efforts towards Dethroning the US Dollar
• The Dawn of 2024: BRICS' Persisting Initiatives
• The US as a Dominant Export Nation and the Expanding Bloc's Influence
• Potential Upheaval of the US Dollar's Dominant Status in Global Finance

BRICS' Commitment to De-Dollarization and its Effect on US Dollars

BRICS' $5 billion exports and ongoing de-dollarization efforts pose a potential threat to the US dollar in 2024. This economic alliance plans to augment these numbers within the year, and with broadened expansion and currency agreements, these moves could have substantial implications for the US dollar.

Leading Export Nations of 2022 and the Changing Global Perspective

In the year 2022, China emerged as the frontrunner in exports, recording a staggering $3.6 billion as per Statista. Russia, India, and the United Arab Emirates (UAE) were also among the top 20 exporting nations. While the United States maintained the second position with $2 billion in exports, the shift in the global perspective is evident.

BRICS' Continuous Efforts towards Dethroning the US Dollar

In the preceding year, the BRICS alliance diligently pursued its global economy reformation project. 2023 was marked by an unprecedented scale of de-dollarization endeavours by the bloc, with the expansion plan further kindling this initiative and fostering expectations of positive results from these efforts.

The Dawn of 2024: BRICS' Persisting Initiatives

As 2024 unfolds, these initiatives persist. Though the effectiveness of these policies has been contested, a potential unexpected impact on the Western currency is anticipated. Specifically, the BRICS bloc is poised to augment its $5 billion in exports, posing a significant potential menace to the US dollar in 2024.

The US as a Dominant Export Nation and the Expanding Bloc's Influence

Despite being a dominant export nation, the United States trails behind China and by a substantial margin. The broadening presence of the bloc enhances the unilateral trade opportunities available to China, enabling it to expand its export practices further.

The five-nation expansion, which includes the UAE, Saudi Arabia, Iran, Egypt, and Ethiopia, plays a pivotal role in this development. With their official inclusion at the beginning of the year, these countries have displayed a keen interest in escalating collaboration, particularly by supporting one of the alliance's fundamental principles established in 2023 - the promotion of local currency.

Potential Upheaval of the US Dollar's Dominant Status in Global Finance

Although the US dollar's dominance in global finance remains largely uncontested, the process remains nascent. The focus on de-dollarization became crucial to the BRICS alliance following sanctions imposed by the West. The continued evolution and implementation of these initiatives are likely to have long-term effects and are expected to gain momentum throughout the current year.

Edited by Jonathan Stoker