The BRICS alliance kick-started the de-dollarization agenda to bring the US dollar down from the world’s reserve currency status. The bloc initiated multiple policies to hamper the USD’s growth and make local currencies the center of all transactions. The de-dollarization program was started in 2022 after the US placed sanctions on Russia for invading Ukraine.
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. BRICS is hell-bent on teaching the White House a lesson through de-dollarization and aims to topple the US dollar and make local currencies reign supreme.
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BRICS See No Progress in De-Dollarization, US Dollar Maintains Supremacy
The US dollar remains the world’s de facto currency for trade despite BRICS indulging in de-dollarization practices. Their policies did little to nothing to bring the US dollar down and the USD currency maintains its worldwide supremacy. A new study from the Atlantic Council’s GeoEconomics Center shows that the US dollar continues to be the primary currency for all trade and cross-border transactions.
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While BRICS reported a few bilateral trades in local currencies citing de-dollarization, the percentage is too tiny to lay a dent in the US dollar. The Atlantic Council noted that the US dollar has only strengthened in recent months despite growing threats from the bloc.
The US dollar has outperformed every major global currency including 22 out of 23 leading currencies in Asia. The local currencies of BRICS nations have fallen to new lows against the USD. Currencies from BRICS nations like the Chinese yuan and Indian rupee have dipped despite threatening de-dollarization for two years.
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Even the Central Banks of several countries are accumulating more US dollars and not the Chinese yuan this year. This comes after BRICS member China was on a world tour convincing other developing countries to ditch the US dollar.