- UBS has hinted that the US Dollar could further depreciate amidst the decision of global central banks to tighten their monetary policies and the BRICS’ relentless de-dollarization effort.
- According to popular author Robert Kiyosaki, it is important to move away from assets outside the traditional financial system to resort to the likes of gold, silver, and Bitcoin.
One of the leading financial institutions in the world, UBS, disclosed in August that the US Dollar has weakened to its lowest level this year. This highlighted the impact of the recent strategies by several groups, including the BRICS alliance, to break away from the over-reliance on the US Dollar.
A month after this surprising discovery, UBS Chief Investment Officer (CIO) issued another caution about a potential continuation of the Dollar depreciation. According to the CIO, combining elements of interest rate differentials and the rising concerns of the US fiscal deficits are the key culprits that could force the currency into medium-term pressure.
We expect the greenback to continue to depreciate.
To illuminate this further, UBS pointed out that the previous strength of the US Dollar was backed by the favorable interest rate differential. However, the decisions by central banks worldwide to tighten their monetary policies have subjected this factor to a significant nosedive.
To prevent the depreciation impact, UBS advised investors to use futures or swaps or even opt for hedge share classes for mitigation. Specifically, the financial institution advised that investors resort to one of the most efficient risk management strategies of diversification using gold. According to UBS, currencies, including the Swiss franc, euro, British pound, and Australian dollar, are particularly strong and could offer better stability compared to the US Dollar.
US Dollar Facing More Threat from the BRICS
Recently, the founder and CEO of Zang Enterprises, Lynette Zang, disclosed in our earlier publication that the dominance of the US Dollar, which has reduced to 3%, could further fall to zero in 2025.
I believe, with all my heart and everything that I know, that we’ve already begun the transition to hyperinflation. We’re going to see more borrowing, more money printing, and more inflation because they have not killed that beast that they created and continue to create. It’ll become very obvious in 2025.
To make things worse, the BRICS alliance is fast approaching its plan to ditch the USD as it deliberates on a new currency for trade among member countries. Recently, we reported on the decision of the alliance to base its proposed currency on a “basket” of 40% gold and 60% currencies of sovereign nations. Based on that report, the Chinese yuan, Russian ruble, and Indian rupee were highlighted as the most likely currencies that could be involved.
According to our other report, the de-dollarization roadmap could be one of the agendas in the upcoming BRICS summit this month. In this case, the US Dollar could suffer more, making Bitcoin one of the best options as a hedge according to analysts.
In agreement with this, famous “Rich Dad Poor Dad “ author Robert Kiyosaki recently advised that investors consider gold, silver, and Bitcoin to “dodge” the potential economic downturn that could “render the US Dollar valueless.”
At press time, Bitcoin was trading at $63k after surging by 9% in the last 30 days.
