The BRICS alliance is looking to uproot the US dollar from the world’s reserve currency position. The bloc wants to put local currencies in the top slot and reduce dependency on the greenback. The power struggle has ignited fresh debates about the use of the USD among developing nations. Eastern nations want to tilt power from the West and usher into a new financial era.
Also Read: BRICS: New Country Plans to Reduce 25% of Trade Without US Dollar
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. The move will shake the foundation of the US dollar and weaken its dominant position in the currency markets. Local currencies are getting stronger in 2025 as the USD is down against all leading currencies this year as the DXY index fell to the 103.2 mark.
Also Read: BRICS Makes Major Announcement on De-Dollarization
BRICS: The US Dollar Will Maintain Its Dominance
Ashishkumar Chauhan, the Managing Director of the National Stock Exchange (NSE) spoke about the US dollar’s prospects. He spoke at a Singapore panel on capitalism and technology highlighting the importance of geopolitics and the global stock markets. He also touched on the subject of de-dollarization where BRICS aims to replace the US dollar with local currencies.
Also Read: BRICS: The US Dollar Has Become a Problematic Currency
Chauhan stressed that BRICS cannot shake the foundation of the US dollar and it will remain the dominant currency. “After World War II, the US meticulously positioned itself to replace the British pound as the global reserve currency. Today, no other country is ready to take on that role,” he argued.
He explained that leading currencies like the euro and the pound are not strong enough to stand the whiplash of the markets. The Chinese yuan and the Japanese yen also fold under pressure and cannot challenge the USD. Therefore, no matter how hard BRICS tries its hand in de-dollarization, the US dollar will remain the dominant currency.
