The US dollar is a heavy contender in the forex market and dominates the sector in every aspect. From currency trading to settling cross-border transactions in the US dollar, the greenback rules the roost. The Euro, Pound, and Yen are strong competitors to the US dollar and now BRICS currencies have entered the race. BRICS member China is pushing the Chinese Yuan ahead for trade settlements with developing countries and not the US dollar.
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This adds pressure on the US dollar as BRICS is convincing other developing countries to trade in local currencies. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
BRICS: Among the 180 Global Currencies, US Dollar Ranks 10
The top 10 currencies command a strong footing in global trade and investments and the US dollar is the de facto supreme currency. However, Forbes released the latest list of the top 10 global currencies, and the US dollar comes at the 10th position out of 180 currencies.
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That’s a remarkable feat as the USD is competing with almost all currencies that want to make it to the top. Even BRICS currencies are unable to take on the US dollar despite their best efforts to topple it.
Below is the list of the top 10 global currencies, according to Forbes.
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The Kuwaiti Dinar takes first place while the Bahraini Dinar comes second. Currencies like the Omani Rial, Jordanian Dinar, and the Gibraltar Pound take the third, fourth, and fifth spots, respectively. In addition, the British Pound stands in sixth place while the Cayman Island Dollar comes seventh. The Swiss Franc, Euro, and the U.S. dollar rank eighth, ninth, and 10th respectively. BRICS currencies are not in the top 10 list and have a long way to reach the milestone.
Despite being in the 10th position, countries around the world, including BRICS need the US dollar for transactions. Without the USD, no BRICS country can survive for long as trade agreements will come to a standstill.