One of world leading bank JP Morgan CHASE analyzing BRICS de-dollarization by the countries of BRICS nation and come to the conclusion that U.S. dollar is at risk. The dollar is at risk of losing its global reserve status because BRICS countries started to trade in their local currency.
The institute JP Morgan analyze predicts the risk of de-dollarization is a big knockdown to U.S. economy, as other currency will become the global reserve.
“Some signs of de-dollarization are also playing out in oil markets. “The U.S. dollar, one of the key drivers of global oil prices, appears to be losing its once powerful influence,” said Natasha Kaneva, Head of Global Commodities Strategy at J.P. Morgan”
Weaponizing the U.S. dollar through history was not a good example that is why the importance of the dollar has declined significantly starting from 2008 to 2023.
The risk of recession in U.S. is growing and the rise of the U.S. interest rate may go above the limits of expectation.