Despite the work of the BRICS alliance over the past several years, a shocking new report shows no de-dollarization progress. The Atlantic Council’s GeoEconomics Center has published a report showing the group has been unable to threaten the greenback’s position as the world’s primary reserve asset.
The think tank’s Dollar Dominance Monitor notes that there is no real threat to the currency in both the medium and short term. The data shows that the asset is still representative of 58% of all foreign reserve holdings globally. The second most-used current is the euro, which represents 21%, comparatively.
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US Dollar Seemingly Unaffected by BRICS
Over the last two years, the BRICS economic alliance has instituted notable de-dollarization initiatives. The bloc has recently signed a massive trade agreement, with the collective and six partner countries ditching the dollar in trade settlements. Yet, that appears to be having little effect on the currency.
A new report has shown that the BRICS bloc has shockingly made no progress on its de-dollarization practices. The Atlantic Council report shows that the global economy has seen little impact from the collectives efforts to ditch the US dollar over the last 24 months.
“The dollar continues to dominate foreign reserve holdings, trade invoicing, and currency transactions globally,” the report said. “All potential rivals, including the euro, have a limited ability to challenge the dollar in the immediate future.”
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The report notes the BRICS new cross-border payment system is in its early stages. However, they noted similar developments are “difficult to scale due to regulatory and liquidity issues but may form the basis for a currency exchange platform over time.”
A third of central banks have sought to increase gold reserves in 2024, the publication noted. The think tank notes that no currency has established itself as an alternative to the greenback. Instead, the metal is looking like a prominent asset for nations wanting to “de-risk away” from the dollar.