Throughout the last several years, the global south has sought ways to de-dollarize the global economy. They have made headway, but the greenback remains the most prominent currency on the planet. This could be why, when it comes to the BRICS bloc taking on the US dollar, 2025 may be the year it either happens or it doesn’t.
For as much as the economic alliance has continued to wage war against the currency, the US dollar’s position has not yet been threatened. Indeed, Brazil even confirmed that its position looks to be secured for much of the next 10 years. Therefore, if it is unable to make significant gains regarding de-dollarization this year, it may be safe to question if it can ever happen.
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BRICS & The US Dollar: Is 2025 The Last Year It Can Truly De-Dollarize The Globe?
The idea of de-dollarization has seemingly been ingrained in the very makeup of the BRICS alliance. The bloc has sought to challenge the global status quo. There may be no bigger aspect of that than the greenback and its position. Moreover, it is a major reason for tension between the West and the bloc. Specifically, those tensions led US President Donald Trump to threaten 150% tariffs on the group.
The alliance has discussed the creation of its own native trade settlement currency to lessen reliance on the West. It has also promoted the use of national currencies in trade to diversify. However, the fact of the matter may be that, when it comes to the BRICS bloc and the US dollar, 2025 is the year that they take major strides in de-dollarization, or they may never will.
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The RBICS bloc operates on a rotating presidency. This ensures that every country gets a chance to chair the group and lead issues they deem vital. This year lies on Brazil, one of the loudest proponents of lessening US dollar reliance. However, next year India is set to take over the position.
Throughout this year, India has sought to strengthen ties with the United States in a big way. The two nations are expected to announce a new trade deal with depleted tariffs on US imports. Moreover, it has been vehemently against any de-dollarization efforts. Therefore, it could be a stark end to those efforts. Specifically, if plans to dethrone the dollar don’t make major strides over the next several months, it’s fair to wonder if they ever will.