🆘A surging U.S. dollar has raised concerns among Asian currency authorities. The dollar is surging against local currencies in the foreign exchange markets, leaving monetary officials worried. The U.S. dollar is ending on a new high every day at a time when BRICS is looking to derail its growth. Therefore, BRICS member China and another Asian country, Japan, are looking to halt the growth of the U.S. dollar.
The increase in U.S. dollar exchange rates against local currencies comes due to the Fed raising interest rates consecutively this year. The development is causing foreign exchange disparities in the forex markets in China and Japan. Additionally, the growing price of crude oil is also a cause for the dollar’s increase in the foreign exchange markets.
BRICS member China announced a new rule that its financial institutions must hold foreign currency deposits by a third only. China wants to limit the use of the U.S. dollar against the Chinese Yuan in global markets. The move comes as the BRICS alliance is looking to promote local currencies by sidelining the U.S. dollar for trade.🆘
Once the dollar is released from these market manipulations, it will start to fall and the metals will climb.