Some “ASEAN and BRICS” News 5-23-2024
10 ASEAN Countries To Ditch the U.S. Dollar
Vinod Dsouza May 20, 2024
The Association of Southeast Asian Nations (ASEAN) countries are looking to promote local currencies for trade and ditch the U.S. dollar for cross-border transactions. ASEAN consists of 10 countries and their economies are fast developing in the global sphere. This puts the USD under pressure, as several developing countries including the ASEAN bloc are looking to end reliance on the U.S. dollar.
Source: orfonline.org
ASEAN: 10 Countries Look To Stop Using the U.S. Dollar, Settle Trade Payments in Local Currencies Instead
The 10 ASEAN countries that are looking to stop using the U.S. dollar for trade are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. According to the latest figures from the International Monetary Fund (IMF), commonly called the World Bank, the combined GDP of ASEAN nations currently stands at around $4 trillion.
If the ASEAN alliance completely starts using local currencies for trade, the U.S. dollar will be in jeopardy. In particular, Indonesia is the most aggressive among the lot in pushing the de-dollarization agenda ahead. Indonesian President Joko Widodo is urging the bloc to quickly move away from the U.S. dollar and start using local currencies.
The move will strengthen their native economies giving local currencies a boost in the global foreign exchange markets. Several developing countries fear the rising U.S. debt of $34.4 trillion can affect their native economies and businesses. Therefore, the only solution to American debt is to make ASEAN countries use local currencies and sideline the U.S. dollar.
The U.S. pressing sanctions on other developing countries is also among the reasons why ASEAN wants to ditch the dollar. A stronger local currency will have no adverse effects from U.S. sanctions making their economies safer. In conclusion, the next decade will be different for the U.S. dollar as many nations are looking to uproot it.
Source: Watcher Guru
https://dinarchronicles.com/2024/05/22/10-asean-countries-are-looking-to-ditch-the-us-dollar/
BRICS: America’s 4th Largest Bank Warns of Economic Crash
Joshua Ramos May 22, 2024
Amid the ongoing geopolitical shift brought about by the BRICS economic alliance, America’s 4th largest bank has warned of an impending economic crash. Specifically, Citigroup’s chief US economist, Andrew Hollenhorst, has spoken with CNBC regarding his concerns for the United States and its economic fragility.
Hollenhorst discussed his concerns, specifically regarding the labor market. He noted that the deterioration of the hiring sector could have dire implications for the country. Ultimately, he spoke on why a hard landing may be all but an inevitability for the nation.
Citigroup Warns of Potential Economic Crash
Over the last year, the BRICS economic alliance has observed significant growth. Not only has the bloc embraced its first expansion initiatives since 2001, but it has also embraced alliance-wide economic policies. These infrastructure developments hinder international reliance on the US dollar while promoting local currency use.
Now, the geopolitical shift that the BRICS bloc has orchestrated may be playing a part in America’s 4th largest bank warning of an impending economic crash. Specifically, Citigroup’s Andrew Hollenhorst noted that a hard landing is likely in the cards.
“Firms are hiring at a lower rate. Firms are having workers work less hours,” Hollenshorrts told CNBC. “So this gradual softening has already started. That tends to snowball and end up in something that looks more like a hard landing.”
Moreover, Hollenhorst noted that some reports have expressed a more concerning view of the economic circumstances. Additionally, he noted that a recession could be set to follow any hard landing that takes place. Specifically, he notes that small businesses have displayed the lowest levels of hiring intentions since 2016.
Furthermore, the hiring rate is at its lowest level since 2014, Hollenhorst stated. Therefore, the labor market’s reality coincides with the overall interest rate issue, inflation persists, and optimism does not appear to be a logical response.
All of this will also contend with the ongoing US dollar questions that have arisen in recent months. The BRICS alliance has driven a global shift toward gold and other assets. Therefore, ongoing debt concerns and de-dollarization initiatives will only increase pressure on the US in its most dire state.
Source: Watcher Guru
https://dinarchronicles.com/2024/05/23/americas-4th-largest-bank-warns-of-an-economic-crash/