BRICS No Demand for US Dollar Bonds: Sales Get Worst Start Since 2016
Are BRICS nations losing interest in US dollar bonds? New data suggests a significant shift is underway, with the worst start to US dollar bond sales since 2016. This trend is fueled by a growing desire among BRICS countries and larger Asian markets to diversify away from the US dollar.
Hace 59 minutos According to the latest report from Dealogic data, issuance of US dollar-based bonds from foreign countries has dropped by 19% in 2025. A dip of $86.2 billion worth of US dollar bonds signals a potential turning point in global finance.
The BRICS Dollar Diversification Strategy
BRICS nations have recently started dropping the dollar in bilateral trade in favor of the Chinese yuan or other local currencies. BRICS Pay offers a single payment system outside of the traditional dollar-dominated financial system, further eroding demand for US currency.
Holding the US dollar in reserves for BRICS and other Asian nations poses an equal threat, as a market downfall creates turmoil in their native economies. Asian countries are carrying the risk associated with dollar dependence, prompting them to seek alternatives.
The Rise of Local Currency Bonds
The BRICS bank, known as NDB, is launching ‘Maharaja Bonds’ worth $28 billion in local currencies, bypassing the US dollar. This move marks a significant shift towards financing development projects without reliance on the US dollar. To ensure a soft landing the New Development Bank of BRICS countries can issue bonds that would be sold to countries, whose assets have been frozen or are afraid that these may be frozen.
Declining US Dollar Bond Sales: A Cause for Concern?
The slogan works equally well for the US dollar, despite a lot of angst over the status of the world’s main reserve currency. However, the numbers tell a different story. BRICS countries and larger Asian markets are losing interest in US dollar bonds. Sales saw a significant drop in January 2025. The global shift away from the US dollar is gaining momentum.