The White House began to respond to the actions taken by a member of the BRICS, China, which they said deliberately wanted to weaken the US dollar.
Watcher News reports that White House economist Jared Bernstein has revealed he holds some evidence that China is deliberately seeking to weaken the US dollar. The US currency has become a major concern when the BRICS announced that it would reduce its dominance in the international trading scene by introducing a new currency.
This move sparked some interest from non-BRICS countries, such as Malaysia, France and Iran, who are looking to reduce their dependence on the US dollar.
China Wants To Weak US Dollar
Bernstein said that China's efforts were a move to weaken the US dollar as the global reserve currency. He also urged Congress to address the ongoing debate over the US debt ceiling, as well as protect the value of the US currency from the campaigns of BRICS members.
With the Senate Banking Committee, Bernstein said he held evidence that China wants to weaken the US dollar, while addressing the ongoing controversy surrounding the US currency.
"One thing we can really do to help the dollar maintain its reserve currency status, but also to protect the value of the US dollar is raise the debt ceiling," Bernstein said. Even so, there has been no traction on the agreed budget to cause an increase in the debt ceiling.
The international trade market is also looking for ways to reduce the use of the US dollar in its transactions, which threatens to erode the dominance of the US dollar.
US sanctions against Russia, Iran and China sparked moves to seek alternatives to US dollars in their international trade.
The BRICS is also in the spotlight because apparently, there are quite a number of countries that want to follow the de-dollarization step, which could be widespread in the crude oil and natural gas markets.
Previously, China and Russia had traded without involving the US currency, namely using the yuan. The hegemony of the US dollar is increasingly threatened by the impact of sanctions of their own making, so investors are eagerly waiting for how this will turn out.