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In a statement issued today, White House economist, Jared Bernstein says there is “some evidence” that China wants to weaken the US dollar. Moreover, Bernstein There was some evidence that China wants the dollar to weaken as the international reserve currency, said a White House nominee for a top economist position on Stephen Miran, who leads the White House Council of Economic Advisers, says the global demand for dollars has created “undue burdens on our firms and workers White House economist Jared Bernstein disclosed in Congress that there is some evidence that “China wants the U.S. dollar to lose its position” as the world’s reserve For a BRICS currency to work, China would need to provide massive amounts of yuan as a global “liquidity spigot,” similar to how the U.S. provides and supports

BRICS, China, and the US Dollar: Is Beijing Trying to Weaken the Greenback?

Growing speculation surrounds China's intentions within the BRICS economic bloc, particularly regarding the US dollar's global dominance. Recent statements from the White House suggest growing concern. White House economist, Jared Bernstein says there is “some evidence” that China wants to weaken the US dollar. But is there real evidence to support these claims?

White House Voices Concerns Over China's Dollar Strategy

The Biden administration has addressed the issue directly. A White House nominee for a top economist position, Stephen Miran, stated, There was some evidence that China wants the dollar to weaken as the international reserve currency. This adds weight to the ongoing debate about the future of global finance.

Adding to the discussion, Stephen Miran, who leads the White House Council of Economic Advisers, says the global demand for dollars has created “undue burdens on our firms and workers. This burden, coupled with perceived manipulation of the dollar's value, fuels the discussion around alternative reserve currencies.

BRICS Currency: A Yuan-Dominated Alternative?

One proposed alternative is a BRICS currency, potentially backed by gold or a basket of commodities. However, for a BRICS currency to work, China would need to provide massive amounts of yuan as a global “liquidity spigot,” similar to how the U.S. provides and supports the dollar. This would require significant financial commitment and potentially cede control of the yuan's value.

China's Aims and the Dollar's Dominance

White House economist Jared Bernstein disclosed in Congress that there is some evidence that “China wants the U.S. dollar to lose its position” as the world’s reserve currency. While the ambition may exist, the practical challenges are immense. The dollar's established infrastructure, deep liquidity, and global acceptance present significant hurdles for any competing currency.

The future of the dollar's dominance remains uncertain, but the conversation surrounding BRICS and China's role in shaping a new global financial order is undeniably growing louder.

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