Goldman Sachs: US Dollar Could Boom Despite BRICS De-Dollarization Efforts

Goldman Sachs analysts are forecasting a potential boom for the US dollar that could undermine BRICS’ efforts to reduce dollar dependence.

According to strategists Karen Reichgott Fishman and Lexi Kanter, the tariffs expected under Trump’s administration may strengthen the dollar, making long positions on USD particularly attractive for investors.

While these protectionist policies could drive inflation, they’re also likely to support US yields, further enhancing the dollar’s appeal. BRICS member nations, which have been actively working to challenge the dollar’s reserve currency status, now face significant headwinds as their local currencies continue to weaken against the USD.

The report suggests that BRICS’ de-dollarization initiative could stall for the next four years amid the threat of escalating trade wars and tariffs.