As the BRICS nations have made their opinion on the currency known, more countries are moving away from the US dollar as a reserve currency. Moreover, the collective has recently expressed its desire to diminish the prevalence of the greenback within international trade.
Now, various figures are speaking out on both sides of the development. Specifically, Donald Trump took to his social media platform, Truth Social, to comment on the matter. Stating that the potential unseating of the US dollar’s dominance would be the “biggest defeat for our country in its history.”
USD Reserve Currency Status Threatened
The BRICS nations—made up of Brazil, Russia, India, China, and South Africa—have been outspoken in their stance against the US dollar in recent weeks. Moreover, they have expressed their concern with the greenback as the standard currency for international trade. Subsequently, noting the nation’s desire to change that.
Now, amidst these actions from the BRICS nations, more countries are moving away from the US dollar as a reserve currency. Importantly, the American currency is threatened by the rising prominence of China as an economic juggernaut.
Currently, Fox reports that the US dollar will represent more than 58% of global currency reserves at the end of 2022. Conversely, the Chinese renminbi represented nearly 3%. Yet, the global power balance shifting away from the G7 countries and toward the BRICS collective makes this potential dethroning a real possibility.
The BRICS nations surpassed the G7 countries in GDP (PPP) in 2022, thus presenting a starting point for the US dollar to be replaced. Additionally, the Wall Street Journal noted Russia’s turning toward the Chinese yuan in an effort to eliminate the greenback’s prevalence globally.