Operation Sandman: Unveiling a Global Challenge to the US Dollar

A coalition of nations aims to disrupt the dominance of the US fiat currency system.

What is Operation Sandman?

Operation Sandman is reportedly an international collaboration involving over 100 nations. These countries aim to sell off their holdings of US Treasury bonds simultaneously. The goal is to destabilize the US fiat currency by forcing the repatriation of US dollars. Such an action could undermine the dollar’s global reserve currency status, potentially leading to a financial crisis within the United States.

This operation aligns with a growing global sentiment to move away from reliance on the US dollar, as evidenced by the recent BRICS summit. BRICS nations, including Brazil, Russia, India, China, and South Africa, have declared intentions to trade using their local currencies, avoiding the dollar.

BRICS and the Push for Currency Independence

The BRICS bloc has actively sought alternatives to the US-dominated financial system. At their latest summit, member nations proposed creating frameworks for trading in local currencies. This initiative underscores their dissatisfaction with the influence of the US dollar and central banking systems.

The adoption of non-dollar trade agreements could accelerate if Operation Sandman unfolds. Nations participating in BRICS and beyond are signaling readiness for a multipolar financial system that limits US monetary control.

Central Banks and Dollar Sales

Data from the Central Bank of Iraq (CBI) illustrates ongoing dollar transactions. On a recent Sunday, the CBI sold approximately $300 million during a currency auction. Most of these transactions supported foreign balances via transfers and credits, underscoring the dollar’s role in global trade.

However, as nations shift away from the dollar, the demand for such transactions could wane. This shift may weaken the dollar’s global liquidity, leading to increased volatility in currency markets.

Implications of a Dollar Decline

The repercussions of Operation Sandman could be severe. A rapid sell-off of US Treasury holdings would flood the market with dollars, devaluing the currency. This could trigger inflationary pressures within the US economy, reducing purchasing power and destabilizing markets.

Globally, nations tied to the dollar might experience economic turbulence, particularly those heavily reliant on dollar-denominated debt. In contrast, BRICS nations and others pursuing currency independence could gain resilience in a multipolar financial landscape.

Operation Sandman represents a potential seismic shift in global finance. Coupled with BRICS efforts, the strategy challenges the dollar’s supremacy and reflects a broader trend of decentralizing financial power. While the operation’s full execution remains uncertain, its implications demand attention from policymakers and investors worldwide.