The purchasing power of the US dollar is declining every year leading to inflation in the homeland. The CEO of Zang Enterprises, Lynette Zang emphasized that the purchasing power of the US dollar is eroding at an advanced speed. This comes when the BRICS alliance is looking to pin the US dollar down as the world’s reserve currency.
Also Read: BRICS Currency: 40% Could Be Tied to Gold, 60% in Local Currencies
Only 3% of the US dollar’s original purchasing power remains in 2024, as documented by the Federal Reserve this year. “This is what the official government data will tell us,” said Zang. This gives BRICS more mileage to take on the US dollar as its purchasing power is dwindling.
BRICS: US Dollar Purchasing Power Might Fall to Zero, From the Current 3%
Zang explained that the US dollar’s purchasing power could collapse to zero from the current 3% that it enjoys. She predicted that it could fall to zero next year in 2025. BRICS could exploit the development and push local currencies ahead of the US dollar for trade.
Also Read: 23 Countries Officially Apply To Join BRICS Alliance
“I believe with all my heart and everything that I know that we’ve already begun the transition to hyperinflation,” Zang told Kitco News. “We’re going to see more borrowing, more money printing, more inflation because they have not killed that beast that they created and continue to create,” she said. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
Also Read: BRICS: Russia Sells $2 Billion Worth of Oil To the West Despite Sanctions
Besides the de-dollarization agenda from BRICS, the US dollar will also have to battle the upcoming CBDC currencies. 134 countries around the globe are in the pilot phase of testing their respective digital currencies. The Atlantic Council reported that out of the 134 countries, 66 nations are already in the advanced phase of testing. CBDC currencies could be a reality in 2027 and challenge the prospects of the US dollar.
