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Following de-dollarization plans throughout 2025, the BRICS is set to continue its hope of dethroning the US dollar in 2025. Indeed, the alliance has not halted its hopes of decreasing According to State Duma Deputy Chairman Alexander Babakov, the BRICS countries are completely ditching the dollar and working on creating a new form of currency BRICS leaders, including Brazilian President Luiz Inacio Lula da Silva, emphasised the need for options beyond the dollara sentiment resonating with developing Given the recent expansion of the “BRICs” countries to include five new members, will the US dollar remain the world’s reserve currency? Franklin Templeton

BRICS: 3 Ways the Alliance is Dethroning the US Dollar in 2024

Is the reign of the US dollar as the world's reserve currency coming to an end? The BRICS alliance is actively pursuing strategies to challenge the dollar's dominance, and 2024 is proving to be a pivotal year. This article explores three key ways BRICS is working to dethrone the US dollar.

1. Development of a New BRICS Currency

According to State Duma Deputy Chairman Alexander Babakov, the BRICS countries are completely ditching the dollar and working on creating a new form of currency. This ambitious project aims to create a stable and reliable alternative for international trade amongst member nations, reducing reliance on the US dollar and fostering greater economic independence.

2. Promoting Trade in Local Currencies

BRICS leaders, including Brazilian President Luiz Inacio Lula da Silva, emphasised the need for options beyond the dollar—a sentiment resonating with developing nations seeking to reduce their vulnerability to fluctuations in the US currency. Increased trade settlements in local currencies like the yuan, rupee, and real bypass the dollar, chipping away at its global transactional volume and influence.

3. Strategic De-Dollarization Initiatives

Following de-dollarization plans throughout 2025, the BRICS is set to continue its hope of dethroning the US dollar in 2025. Indeed, the alliance has not halted its hopes of decreasing reliance on the dollar. These initiatives involve diversifying reserve assets, reducing dollar-denominated debt, and promoting alternative payment systems, collectively diminishing the dollar's centrality in the global financial system.

Given the recent expansion of the “BRICs” countries to include five new members, will the US dollar remain the world’s reserve currency? As Franklin Templeton notes, this expansion signifies a shift in global power dynamics and further strengthens the BRICS' collective push for de-dollarization. While the dollar's dominance won't disappear overnight, the BRICS' multifaceted approach presents a credible challenge, paving the way for a more multipolar financial future. The long-term implications remain to be seen, but the direction is clear: the BRICS alliance is determined to weaken the US dollar's grip on the global economy.

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