News / Economic Divide

Dollar and Oil slump: Targeting the BRICS

Friday, 18 September 2015 7:44 AM [ Last Update: Monday, 16 November 2015 10:57 AM ]

US dollar

Commodities have collapsed by 50%... oil has collapsed by 54%... gold has been hammered by 41%. Stocks have been crushed. These fluctuations have affected the world financial markets.

Most currencies around the world have been pegged against the United States dollar. It tries to keep interest rates low. But ever since the Fed has been inflating the dollar, reducing its purchasing power in relation to other commodities, it has caused other nations to use other currencies. And this has reduced its value, especially recently.

The underlying reasons have ranged from China's devaluation of the Yuan, to low commodity prices. Strange how the BRICS countries, namely Brazil, Russia, China, and South Africa have been targeted, India's financial health experiencing a bumpy ride in the meantime.

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