"The rise of bricks is leading to less utilization of the dollar," Eian explained, adding that though the dollar remains the world reserve currency, the less it is utilized around the globe leading to less dependency and confidence in the dollar.
BRICS has been "also recruiting Middle East members where they can start bypassing the petrol dollar," he stated. Last year the alliance expanded by accepting Saudi Arabia, Argentina, Egypt, Ethiopia, Iran, and the UAE.
"Now it's one thing to have four members, five members, and it's another thing to start bringing in other members. So, these little-by-little movements, when we look back, we're going to realize that this is what triggered for the world to realize that we're not we don't need to be just exclusively dependent on the US dollar, and as a result, a weaker dollar leads to a higher valuation," Eian said.
He went on to explain that "ever since that the dollar was no longer backed by gold, since 1971" the US had an agreement with Saudi Arabia to support their military and defense efforts "on one condition that all trades were supposed to be denominated by the dollar." There have been recent rumors in the media that Saudi Arabia would not be renewing this agreement after 50 years, however there was no confirmation or official statement on that.
"But what we want to look at is these early signals, like in December of 2023 you had the United Arab Emirates basically starting to say, I want to break away from the dollar, and I'm going to start accepting currencies that are not the dollar," Eian said. "So, all of a sudden, the Chinese started having their own trade agreements with that. Now Saudi Arabia is paying attention to this at the end of the day. They care about their defense, but the way they generate the revenue for that nation is ... by selling oil."
He said that "they just need to be able to sell it to any buying member, and when you have more and more confidence in non-dollar-based currencies, there comes a point where they have to utilize that, because that's majority what their economy is based on."
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