BRICS: Neither the Alliance nor the Euro Are a Threat to the Dollar Right Now

The US dollar remains the world's leading reserve currency, with neither the euro nor the BRICS countries significantly reducing the world's dependence on it, according to a recent analysis by the Atlantic Council's Geoeconomics Center.

The report “Dollar dominance overview” indicates that the US currency maintains its superiority in global foreign exchange reserves, trade invoices and foreign exchange transactions. It is expected to remain the world’s dominant reserve currency for the foreseeable future.

The recent strengthening of the US dollar’s global position has been driven by a strong US economy, tighter monetary policies and heightened geopolitical uncertainty, despite efforts by BRICS countries to switch to other currencies. 

В the report it is also emphasized that the Western sanctions against Russia, imposed by the G-7 after the Russian invasion of Ukraine, have prompted the BRICS countries to seek a currency union. However, they have not yet made significant progress in reducing their dependence on the dollar.