Are the BRICS a Threat to the U.S.?: Lacalle

The recent BRICS summit sparked speculation about the end of the US dollar as a global reserve currency, but this is unlikely due to several reasons, including China’s lack of interest in being a global reserve currency and the weak currencies of the invited countries. Meanwhile, the US could undermine the dollar’s credibility by generating massive deficits. If the dollar loses its reserve status, it will likely be due to independent currencies, not competition from another fiat currency. This scenario could bolster the case for gold as a safe-haven asset and an alternative to fiat currencies.