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And that’s true even in places you might not expectlike Kazan, Russia, where President Vladimir Putina champion of reducing the international role of the Why is a BRICS currency unlikely in the near term? A BRICS currency is unlikely because member nations have deep economic imbalances, depend heavily on U.S. BRICS leaders are meeting in Rio de Janiero this summer. Their dedollarization drive has made huge progress over the last two years. Here’s what they’ve A true de-dollarization of our system can and will happen over time, but it won't be orderly. It will come with tectonic geopolitical events and the transition to another This article examines the BRICS bloc's ambitious endeavor to reform the global financial system by reducing reliance on the U.S. dollara strategy commonly referred

BRICS De-Dollarization: Why a True Shift Away From the Dollar Will Take Time

The BRICS nations (Brazil, Russia, India, China, and South Africa) are actively pursuing a strategy of reducing reliance on the U.S. dollar, an endeavor commonly referred to as de-dollarization. BRICS leaders are meeting in Rio de Janiero this summer to discuss further strategies. Their dedollarization drive has made huge progress over the last two years. Here’s what they’ve achieved and what the future holds.

While significant strides have been made, a true de-dollarization of our global financial system can and will happen over time, but it won't be orderly. It will come with tectonic geopolitical events and the transition to another, more multipolar world. This article examines the BRICS bloc's ambitious plan to reform the global financial system by reducing reliance on the U.S. dollar.

Challenges to BRICS Currency and Rapid De-Dollarization

Why is a BRICS currency unlikely in the near term? A BRICS currency is unlikely because member nations have deep economic imbalances, depend heavily on U.S. trade, and possess differing geopolitical agendas. Creating a unified currency requires a level of economic harmonization and trust that currently doesn't exist within the bloc. Furthermore, the U.S. dollar's entrenched position in international trade, reserve holdings, and debt markets presents a formidable obstacle.

The Role of Individual Nations in De-Dollarization

And that’s true even in places you might not expect like Kazan, Russia, where President Vladimir Putin is a champion of reducing the international role of the dollar. Russia, facing sanctions and seeking greater economic independence, is particularly motivated to diversify away from the U.S. dollar. However, even Russia faces challenges in completely severing ties with the dollar-dominated global financial system.

While BRICS nations are actively exploring alternative payment systems and trade agreements that bypass the dollar, the process of dismantling decades of dollar dominance will be gradual and complex. Expect continued efforts, but a sudden, complete shift away from the dollar is highly improbable in the short term.

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