With the dollar down over 9% against a basket of major currencies, a powerful combination of BRICS coordination, local currency initiatives, and rising hedging costs is accelerating the region\u2019s shift toward alternative monetary strategies.<\/p>\n
This isn\u2019t a sudden pivot\u2014it\u2019s the culmination of a trend more than a decade in the making. According to Bloomberg analyst Stephen Chu, the early seeds were planted in 2014 following geopolitical tensions between Russia and the West. That period marked the beginning of Russia shedding U.S. Treasury holdings\u2014a move later mirrored by China and other economies wary of financial entanglement with the United States.<\/p>\n
What began as a slow drift is now turning into a systemic shift. The dollar\u2019s share in global foreign exchange reserves has been slipping, and recent market behavior reflects a growing loss of confidence. Chu notes that markets are now showing fatigue with U.S.-centric trade tensions and erratic tariff policies. The result? A rare synchronized pullback from U.S. assets, including dollars, bonds, and equities.<\/p>\n