The US dollar is currently undergoing a downward spiral. The American currency is down 11% in the last year, rattled badly by Trump’s imposing stance on tariffs, battering the global economy. With raging trade war fears gaining momentum again, a new statement by Russian Minister of Foreign Affairs Sergey Lavrov has added new fuel to the de-dollarization drive. Russia, in the latest BRICS summit, has declared the US dollar “untrustworthy,” claiming that rising US debt is driving the dollar off the charts.
Also Read: BlackRock Says Surging US Debt Could Fuel De-Dollarization
Russia Indirectly Calls US Dollar Unfit and Unwell: What’s Happening
In the latest BRICS summit hosted in Brazil, Russia’s Sergey Lavrov had dropped another statement, leading fears of de-dollarization to catch fire once again. In his latest opinion, Lavrov has deemed the US dollar untrustworthy. Lavrov stated that escalating US debt tensions are now affecting the American currency. He said the dollar’s role as a reliable payment system has been greatly undermined.
“The COVID-19 pandemic has exposed countless disadvantages of the global trade and finance system and accelerated its fragmentation. The erosion of the global economic world order has been exacerbated. As a result of illegitimate unilateral sanctions and the use of dollars as a means of ‘punishment.’ The trust in the American currency as a formerly reliable payment instrument was undermined,” he added.
🚨⚡️ BREAKING
— RussiaNews 🇷🇺 (@mog_russEN) July 7, 2025
Sergey Lavrov:
The US dollar is no longer trustworthy, and the state of US government debt is out of control. pic.twitter.com/qGYk9dDdQB
This has sparked a fresh de-dollarization debate, as prominent nations have now started to speak openly about dollar erosion. China’s Pan Gongsheng had recently delivered a notable speech, vying for a multipolar currency narrative, which does not depend on any singular currency, including the US dollar.
US Dollar’s Crippled Fall
In the meantime, the US dollar is consistently noting a sharp fall in its valuation. The American currency has fallen nearly 10.1% in the last year, affected greatly by Trump’s aggressive tariff policies and rising US debt tensions.
The US Dollar is worth 10.1% less than it was at the beginning of the year. pic.twitter.com/THebkw7FRS
— Koyfin (@KoyfinCharts) June 26, 2025
At the same time, the staggering US debt metrics have also sparked de-dollarization fears, with China offloading US treasury holdings at a rapid pace:
“China is diversifying from the US dollar. China’s gold holdings have risen from 1.0% to 6.5% of reserves. Since 2015, while US Treasury holdings have HALVED from 44% to 22%. Are we heading into several reserve currencies supported by gold? Is the debt-based system near its end?”
🚨China is diversifying from the US Dollar:
— Global Markets Investor (@GlobalMktObserv) June 25, 2025
China Gold holdings have risen from 1.0% to 6.5% of reserves since 2015, while US Treasury holdings have HALVED from 44% to 22%.
Are we heading into several reserve currencies supported by gold?
Is the debt-based system near its end? pic.twitter.com/Ssq5aCMf8K
Also Read: CPEC’s De-Dollarization Strategy Powers Belt & Road Push in Asia