America's influence is being tested on another front currency the D dollarization campaign it's a real thing now even American Banks can't ignore it JP Morgan it is one of America's leading Banks the bank has recognized that the domination of the dollar is under threat the bank has put out an assessment.
listen to this some signs of dedolarization are emerging this trend is likely to persist that's what JPMorgan said the bank believes there is no near-term threat to the greenback's domination but there is a clear Trend developing.
listen to this now again this is from the same JP Morgan assessment it says d-dollarization is evident in FX reserves where USD share has declined to a record FX is foreign exchange reserves the money that central banks around the world keep in their Reserves we have covered the reasons for that in the past as well the international sanctions and the restrictions on trade.
countries are trying to find new ways they want to work outside the current system which is dominated by the dollar usually that means trading in their native currencies.
China has been pushing the Yuan for bilateral trade India too has an arrangement with Russia the rupee Ruble mechanism.
India and Russia are using their own currencies to make payments instead of the dollar or the Euro alternative currencies are just one aspect of this trend.
central banks are stocking up on gold too 2022 was a record year for gold purchases last year central banks bought over thousand metric tons of gold the highest since record keeping began in 1950.
so which central banks are behind the surge in Gold purchases again some familiar names stop the charts Russia China and India
central banks in these countries are beefing up their gold stocks but how big are these reserves what do the numbers say I have some data earlier gold had an 11% share in Central Bank Reserves now this number has shot up to 15%
so there's an increase but the dollar Still Remains dominant 58 of the reserves with central banks around the world are of the Greenback this is a 20-year low and despite that more than half of the reserves are in the dollar what should we make of this in the short term the dollar is still King.
but foundations are being laid for a shift the bricks is leading the charge on this front bricks is an alliance of Nations and I'm talking about Brazil Russia India China and South Africa these are leading emerging economies and they're thinking about making some bold moves.
recently their foreign ministers met they discussed the idea of a shared currency The Proposal was first floated by Russia this happened during last year's brics Summit now the brics has sought some guidance we had one of the senior Executives of the new development.
Bank briefing our meeting on work that the bank has been doing looking at the potential use of alternative currencies to the current internationally traded currencies and looking at how we strengthen the arm of the brics development bank and also ensure that we do not become victim to sanctions.
so serious deliberations are underway but a shared currency is not an easy idea to execute there's a need for direction and a road map the specifics could be spelled out later this year When leaders of brics Nations meet in August for a summit South Africa is playing host we'll be tracking the developments for you.
