Dave Ramsey, the CEO of Ramsey Solutions and a personal finance expert, has dismissed concerns about de-dollarization and the possibility of alternative currencies like the BRICS currency or Chinese yuan replacing the US dollar as dominant in international trade. Ramsey, known for his eight national best-selling books on personal finance, argued in an episode of “The Dave Ramsey Show” that the BRICS nations (Brazil, Russia, India, China, and South Africa) are attempting to create a common currency for international trade. However, he maintained that the countries do not have the economic strength to take down the US dollar and that the majority of world GDP is still derived from the US. Ramsey also discussed other issues related to the topic, including the possible effects of a common BRICS currency and the pitfalls of de-dollarization.
Ramsey’s comments may have shocked some critics of the US dollar, who have contended that a common BRICS currency could erode the pre-eminent position of the dollar in international trade. Specifically, some financial experts have suggested that the BRICS countries will create a common currency that could eventually replace the dollar in international trade. In contrast, Ramsey argued that any new currency would still have to be exchanged for dollars because the US economy is the main player in world GDP. He also derided the size of Brazil’s economy and questioned China’s ability to sustain growth due to demographic reasons.
While Ramsey’s arguments may be questioned by some, the fact remains that the US dollar continues to be the dominant world currency. However, there are concerns that alternative currencies may eventually replace the dollar as the world grows more financially interconnected. Nonetheless, Ramsey’s arguments are likely to reassure those who are worried that de-dollarization could seriously undermine the US economy. Ultimately, Ramsey’s views on de-dollarization are important because they show that the issue is still a matter of debate among experts in the field, and that there is still much uncertainty about the future of the global economy.
