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Brazil’s central bank reportedly believes that the US dollar will maintain its position as the world’s leading currency over the next decade.
According to Reuters, the central bank’s monetary policy director, Nilton David, says that the financial institution does not expect the BRICS group of emerging nations to create markets large enough to topple the US dollar’s dominance within 10 years.
David says that BRICS-denominated assets currently do not have meaningful stock to offset the US dollar.
“I don’t think that will change over the coming decade.”
He says that alternative settlement tools may gain traction and even improve bilateral trade deals, but they would not be enough to displace the US currency.
The BRICS is an intergovernmental organization of 11 countries— Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia and Iran. The group aims to strengthen the economic, political and social cooperation among its members and elevate the influence of Global South countries in international governance.
The group does not have a common currency, but there are concerns that it will create one that can challenge the US dollar. During a 2023 summit, member nations discussed the issue of de-dollarization.
US President Donald Trump has warned of repercussions if the alliance creates a new currency or backs one to replace the greenback.
