There are going to be a lot of dollars “coming home.” Just a few at first. Then a trickle. Then there will be a rush to get out.
It’s not happening because of India and Bangladesh. Nor because of Brazil. But each pair adds to more dollars being sold.
And we thought inflation was bad last year. If the trickle turns into a stream…things could turn quickly.
These countries just need a decent currency to run to.
There are commentaries as to how this steady drip drip of countries adjusting their payments systems, and entering into such trade agreements with this and that country that lessen their use of and dependence on the USD, will continue apace until some critical mass is reached and boom, enough countries will demand more compensation to buy our debt and our reserve status will evaporate rather quickly.
This assumes these various currencies can be supported/backed by adequate GDP. Some will maintain viability, some won’t.
True? I tend to think yes, as every reserve currency back to the dark ages has faltered first and then fell flat.