The U.S. dollar’s share in global reserves fell below 60% for the first time in decades, according to a new report. While the U.S. dollar is experiencing a dip, other currencies like the Euro, Pound, and Yen are seeing a rise. The development is being observed as a growing number of countries begin to settle trade in their national currencies. The de-dollarization process gained steam after BRICS initiated the idea of ending reliance on the U.S. dollar.
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BRICS is aiming to dethrone the U.S. dollar from its global reserve status and replace it with other local currencies. The White House’s pressing sanctions on developing countries and bringing down their economies are the root cause for BRICS to end dependency on the U.S. dollar.
BRICS: U.S. Dollar Global Reserves Fall to 59%
The U.S. dollar reserves stood at 72% in 2002 and have been declining steadily in the last two decades. In 2023, the share of the U.S. dollar in global reserves has fallen to 59%. Therefore, in 21 years, the greenback has dipped by 13% in the global markets, while other currencies are briefly rising. The Chinese Yuan rose 3% in the same period and could spike further as other countries are settling trade in the currency.
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“The Euro has now fallen to 19%, from 28% in 2008. By the way, the Yuan has risen to 3%, a threefold growth since 2016,” said Spokeswoman of Russia’s Ministry of Foreign Affairs, Maria Zakharova to Tass. The BRICS alliance is encouraging other developing countries to sideline the U.S. dollar and promote local currencies for trade. Many more countries are expected to ditch the U.S. dollar to strengthen their native economies.
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BRICS is putting the U.S. dollar under pressure as it would have no means to fund its deficit and lose its global reserve status.