BRICS fails to weaken the US dollar

Dedollarization, the BRICS’ flagship ambition, has just suffered an unexpected blow. Despite years of concerted efforts to erode the dominance of the US dollar, a new report from the Atlantic Council finds that these initiatives have failed to seriously threaten the greenback’s supremacy. This unexpected finding calls into question the viability of the BRICS’ economic strategies.

Atlantic Council Report: An impasse for BRICS dedollarization

The report by the Atlantic Council’s Center for Geoeconomics has revealed surprising results on the BRICS’ de-dollarization efforts. Despite ambitious initiatives to reduce global dependence on the US dollar, these efforts have not produced the expected effects. The dollar continues to dominate global foreign exchange reserves, trade transactions and currency exchanges, » noted the report. Indeed, the data shows that the dollar still accounts for 58% of global reserves, while the euro, in second place, accounts for 21%.

The BRICS had implemented several strategies to challenge the dominance of the dollar, including the creation of new cross-border payment systems. However, these initiatives are still at an early stage and face significant regulatory and liquidity challenges. The report also highlights that “ All potential rivals, including the euro, have limited ability to challenge the dollar in the short term. »

In conclusion, although the BRICS have taken notable steps to promote the use of local currencies in international trade, the impact of these measures remains limited. The US dollar maintains its dominant position, and the BRICS efforts to restructure the global monetary landscape appear to be encountering major obstacles that are slowing their progress.

The Limits and Challenges of BRICS De-Dollarization

The Atlantic Council report emphasizes that, despite some bilateral agreements in local currencies, the share of these transactions is too small to seriously affect the supremacy of the dollar. In reality, BRICS dedollarization policies have had little or no effect on the dominance of the dollar, which continues to reign supreme over international trade and foreign exchange reserves.

BRICS countries' currencies, such as the Chinese yuan and Indian rupee, have seen declines against the dollar, further aggravating the situation. Paradoxically, central banks in many countries have increased their reserves in dollars rather than yuan this year, despite China's continued efforts to promote its currency.

The future prospects for BRICS remain uncertain. The dollar's continued dominance could mean that more coordinated approaches and innovative solutions are needed to truly compete with the US currency. The Atlantic Council report suggests that without a significant overhaul of current strategies, BRICS efforts to reshape the global monetary landscape will remain limited.

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