BRICS: De-dollarisation is on its way – ING
|BRICS will probably have the most room to progress their de-dollarisation agenda in the areas of reserve management and energy trade invoicing, ING’s Chris Turner notes.
BRICS de-dollarisation agenda to influence FX reserves and fuel trade
“Also interesting is the aspect of the CBDCs and the project m-Bridge which one day could cut US banks out of cross-border payments in the BRICS sphere of influence. The prospect of ongoing de-dollarisation also reminds us of the long-term impact on the US Treasury market.”
“Back in the 2000s, after China joined the World Trade Organisation, Asian nations amassed large trade surpluses and large FX reserves as they tried to slow the appreciation of their local currencies. These oversized FX reserves suppressed Treasury yields. BRICS de-dollarisation is the reverse of that trend.”
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