BRICS accumulate gold, but dollar remains untouchable: HSBC

As the BRICS actively seek to dethrone the US dollar as the world's reserve currency, HSBC bank has issued bold predictions about the future of the greenback. In the face of these dedollarization initiatives, HSBC analysts maintain that the dollar will continue to reign as the dominant currency for decades to come.

HSBC's prediction on the US dollar

HSBC, one of the world's largest banks, recently shared its predictions on the future of the US dollar. According to James Steel, chief commodities analyst at HSBC, the dollar will retain its position as the world's reserve currency for the next 20 years. Steel said in an interview with Bloomberg: “ We do not believe that there will be a loss of sovereignty for the US dollar as the world reserve currency for the next 10, 20 years, for reasons that would require an entire program.

The statement comes as BRICS intensify efforts to reduce their dependence on the US dollar.

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BRICS dedollarization initiatives

Indeed, since 2022, the central banks of the BRICS countries have adopted a strategy of diversifying their reserves, in particular by accumulating large quantities of gold. A measure that follows the economic sanctions imposed by the United States on Russia after the invasion of Ukraine. The BRICS seek to protect themselves against fluctuations in the US dollar and strengthen their economic independence.

Despite their efforts to reduce their dependence on the dollar, HSBC predicts that these initiatives could fail to dethrone the greenback. According to the expert, the local currencies of the BRICS countries currently do not have the capacity to compete with the stability and global confidence granted to the US dollar. Steel believes that “ dedollarization by BRICS may not achieve its objectives, as the dollar remains a safe haven in times of economic uncertainty.

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