The end of the dollar? The Brics want to get rid of it in July

As the BRICS summit approaches to Rio, Ron Paul is sounding the alarm: a monetary tilting is being prepared. The parliamentarian evokes a “Rio Reset”a coordinated offensive of emerging savings to marginalize the dollar in world exchanges. Behind this declaration, a broader dynamic: that of a multipolar financial order in gestation. While monetary tensions are intensifying, the initiative carried by the BRICS could precipitate a paradigm change with global consequences.

The “Rio Reset”: a frontal dispute of the domination of the dollar

While the BRICS accelerate their transition to local currencies, the former member of the US Congress Ron Paul rocked the global financial scene on June 3 by announcing on X (formerly Twitter): ” The BRICS block prepares its Rio Reset for July, exactly the kind of challenge to the hegemony of the dollar that I have been predicting for years».

Behind this term hides an initiative carried by the group of BRICS, which intends to initiate a transformation of the rules of global trade.

This strategy should be unveiled at the Summit planned in Rio de Janeiro on July 6 and 7, 2025, and aims to significantly reduce the use of the US dollar in international trade. According to Ron Paul, this initiative could call into question a monetary order based on the greenback for almost eight decades.

The main lines of the project, already sketched by the leaders of the block, show a clear desire to promote monetary sovereignty and to rebalance global economic power relations:

• The central objective: to free the trade of the BRICS from dependence on the dollar, by favoring the use of national currencies;

• Inventory: According to Moscow, more than 65 % of intra-bricing exchanges are today made of local currencies, compared to approximately one third in dollar;

• The official position: the BRICS do not consider the creation of a single currency for the moment, but rather a strategic coordination to strengthen their financial autonomy;

• Motivations: to emancipate geopolitical control instruments such as the SWIFT system or the economic sanctions imposed via the dollar;

• The leadership of the summit: Brazil, host of the meeting, would be on the front line to orchestrate this“Rio Reset”alongside China and Russia.

In a note published on Birch Gold Group, Ron Paul affirm : “In July, the nations of Brics will reveal their most ambitious plan to date: create an alternative to the dollar financial system».

This approach is part of a global dynamic of contestation of the post-Bretton Woods financial order, without proposing a brutal rupture.

Ron Paul warns against a dollar crisis and the return to gold

In his words, Ron Paul is not content to describe a geopolitical evolution: he sees it as a systemic break, like the one who saw the pound sterling yielding his place to the dollar after the Second World War.

He alerts the internal repercussions that a loss of reserve currency could cause: “When the fiduciary currency is put in competition, the Americans discover the real cost of the endless monetary printing».

In particular, it fears a deterioration in purchasing power, savings erosion and instability of pension funds and social benefits in the United States.

Faced with what he perceives as an imminent monetary crisis, Ron Paul returns to a historic workhorse: gold. According to him, central banks around the world would have anticipated this movement by increasing their gold reserves, which would reflect an increasing loss of confidence in the dollar.

In this context, he invites individuals to envisage a diversification of their heritage via physical assets considered to be more stable, like gold, which he describes as “honest, real currency, which cannot be manipulated or devalued». In particular, he mentions the conversion of retirement accounts to supports backed by gold, as a precautionary measure.

This progressive shift outside the dollar could also strengthen the dynamics already at work in the crypto ecosystem. If the BRICS move away from the dollar system and the Swift infrastructure, digital currencies, including stablecoins and bitcoin, could take advantage of a decentralized multipolar exchange space.