Foreign Countries Are Slowly Ditching the Dollar – Here’s Why You Should Care

[Inside Wall Street with Nomi Prins]( Foreign Countries Are Slowly Ditching the Dollar – Here’s Why You Should Care By Nomi Prins, Editor, Inside Wall Street with Nomi Prins The U.S. dollar is under threat. And foreign nations are beginning to turn away from dollar-denominated assets. I talked about that in my essay yesterday. Make no mistake, this trend won’t happen overnight. It’s small and gradual. Here’s how it’s all unfolding, though… First, the Fed’s interest rate hikes didn’t just trigger volatility in the banking sector. They contributed to an eroding of trust in the dollar as a payment system globally. That’s because higher interest rates made borrowing U.S. dollars too expensive. So many countries, from Argentina to Brazil, started trading in non-dollar currencies. Second, rising borrowing costs made foreign governments dump U.S. Treasury bonds. China, which holds a significant number of Treasuries, cut its holdings to its lowest levels in more than a decade. But this shift isn’t limited to the financial crisis of the past year. It’s a sign of a global push to move away from the dollar. Here’s why… Recommended Link [Final stage before digital money]( [image]( The end is near… Our financial system is about to be transformed in a way that would’ve been unthinkable just a few years ago. And almost nobody is prepared for the chaos that follows. According to Bank of America, this overhaul is imminent – And Dr. Nomi Prins says the final stage begins in July, with the rollout of the FedNow system. To show you everything you need to know about the FedNow system – and to help you prepare – Dr. Prins has recorded a free presentation with all the details. It’s controversial, but Nomi’s interview is a must-watch for anyone with more than $2,500 in an American bank or retirement fund. [Click here to find out what you need to do to prepare for this historic transformation.]( -- Pushback Against the Dollar Is Gaining Steam Countries’ feelings towards the dollar are souring. We can get a good sense of that by looking at where the dollar stands in foreign reserves. In 1999, central banks held 70% of their foreign reserves in U.S. dollars. That’s the year the euro came on the scene, meaning the dollar had less competition. Today, central banks hold about 58% of their foreign reserves in U.S. dollars. The rest is in euros (20%), British pounds (4.9%), Japanese yen (5.5%), and Chinese yuan (2.6%). What that means is that the dollar is still king. It’s the dominant reserve currency by almost three times the next largest currency, the euro. But as we’ve explained, the trend to undermine the dollar is underway… Recommended Link [“Extreme consequences” coming for the U.S. economy, warns Warren Buffett]( [image]( Warren Buffett recently warned that “extreme consequences” are coming for the U.S. economy. To see why and how to protect yourself… [Click here and watch what happens in the first 10 seconds of this video.]( -- A Matter of Economic Survival Other governments want to control their own economic destinies. A strong dollar makes their own currencies weaker. They’ve seen the financial turmoil that comes with that. When the dollar is strong, it’s harder for them to repay dollar-denominated debt and to trade for goods and raw materials. Just in 2023, countries like Egypt, Pakistan, and Ghana had to ask the International Monetary Fund (IMF) to bail them out. They had borrowed heavily in U.S. dollars. And paying it back meant a squeeze on what they could spend at home. For them, moving away from the dollar is a matter of economic survival. Second, other governments are losing trust in the U.S. on a financial and geopolitical level. Political tools like sanctions and embargos were the first to create distrust. Then bank failures, high interest rates, and economic uncertainty made business with the U.S. a financial liability. The economic sanctions placed on Russia in response to its war in Ukraine serve as a reminder to global leaders risking political friction with the U.S. That’s why major trading partners like China are taking action. This year, China struck a deal with Brazil to pay for trade and financial transactions in their own currencies instead of using dollars. Now, to be clear, King Dollar won’t lose its status overnight. Global investors and institutions still see the dollar as the dominant currency. But it’s important to understand that the dollar’s position is not what it used to be. These moves are small and gradual. It’s like a death by a thousand cuts. Recommended Link [“Amazon Loophole” could hand you $28,544 in “royalty” payouts]( [image]( Thanks to a little-known IRS loophole… Regular Americans can collect up to $28,544 (or more) in payouts from what Brad Thomas calls the “Amazon secret royalty program…” And the best part is, there are: - NO age or income requirements… (It’s available to anyone 18+ or older) - NO employment requirements… (You can be working part-time, full-time, or even be retired) - And you NEVER have to shop or sell a single product on Amazon… (It only takes 5 minutes to set up!) See how to collect the next payout before the strict cutoff deadline. [Watch short video now.]( -- How to Protect Your Money Here’s the good news… There are ways to diversify your portfolio, your money, and your investment outlook as this trend unfolds. Remember, one of the main reasons for less confidence in the dollar is the instability of the U.S. banking system. So you should avoid investing or depositing your money in banks that are at risk of failure. To help you protect your wealth, my team and I dedicated hours of research to find out which banks could be the next to collapse. We prepared a new special report with our findings, The 722 Bank Bombshell: Is YOUR Bank Next to Fail? It reveals seven banks that are on the brink of failure. This level of research is normally reserved for our paid subscribers. But this situation is too dire for me to keep this report behind a paywall. See, in the days ahead, we could see a run on dozens of banks… and a scramble to move wealth like you wouldn’t believe. And as I’ll explain in my Countdown to Chaos emergency briefing tomorrow, Wednesday, June 21 at 8 p.m. ET, it’s all set to unfold starting at the end of July. The crisis that’s coming could mean huge losses for every American. If you don’t prepare today, your nest egg could be at risk. I don’t want you to be blindsided. So please, take a moment today to upgrade to VIP when you sign up for my event [here](. As soon as you do, my team will send you my new special report, The 722 Bank Bombshell, right away. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins P.S. As countries around the world begin to turn away from the dollar, I’ve found evidence that the Fed is set to enact the greatest monetary transformation in the history of America. Between now and the end of July, the Fed will unleash a technology that gives the elites new powers – for the first time ever – to track every dollar you spend… What could our government do with the ability to track every dollar? It could identify: - Who’s spending money… - What they’re buying… - Who they’re buying from… It’ll be the end of the dollar as we know it. But folks who know what’s coming between now and July 31 could have the opportunity to turn as little as $100 into $5,000 or more. That’s why at my emergency briefing tomorrow, June 21 at 8 p.m. ET, I’m going to show you exactly what’s about to happen. I’ll also reveal one way you can profit from the chaos – with one virtually unknown investment that has a history of gains as high as 50x. So if you haven’t yet, be sure to upgrade to VIP [right here]( today. It’s the best way to ensure you get the most out of my briefing tomorrow. [Click here]( to upgrade. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). MAILBAG Do you believe trust in the dollar will return once volatility in the banking sector lessens? Or is the damage permanent? Will the world continue to turn away from the dollar? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). 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