EddieJayonCrypto
23 May 25
Brazil’s central bank believes the US dollar will remain the world’s leading currency over the next decade. Nilton David, the bank’s monetary policy director, stated that BRICS countries do not currently have sufficient market size or assets to challenge the dollar’s dominance. While alternative set...
Brazil’s central bank expects the US dollar to remain the dominant global currency for the next decade, despite efforts by the BRICS group to challenge its position.Nilton David, the bank’s monetary policy director, emphasized that BRICS countries currently lack the market size and assets necessary to displace the dollar’s dominance. While alternative settlement tools might enhance bilateral trade among BRICS members, they are unlikely to replace the US dollar.BRICS is an intergovernmental group made up of 11 countries: Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia, and Iran. The group focuses on strengthening economic, political, and social cooperation and increasing the influence of Global South countries in global governance. However, it does not have a common currency, though there have been discussions about creating one during the 2023 summit.Concerns about a new BRICS currency potentially challenging the US dollar have prompted warnings from US political figures, including former President Donald Trump, who cautioned against repercussions if such a currency is developed.Overall, Brazil’s central bank maintains confidence that the US dollar will hold its status as the world’s leading currency for at least the next ten years, acknowledging that the BRICS group’s current financial markets and asset bases are insufficient to change the status quo.