A recent report by the Atlantic Council’s Geoeconomics Center reveals that despite efforts by BRICS nations to reduce dependency on the U.S. dollar, it remains the dominant global reserve currency.
The study, titled “Dollar Dominance Monitor,” highlights the dollar's stronghold in foreign reserves, trade invoicing, and currency transactions, bolstered by recent U.S. monetary policy adjustments.
Despite initiatives like China’s CIPS and attempts to form a currency union among BRICS nations, the dollar's influence remains largely unchallenged.
The report notes a slight decline in the Chinese renminbi's global share due to economic concerns and geopolitical tensions, further solidifying the dollar's position.
While uncertainties persist, including shifts in gold reserves and challenges to the euro's reserve status, the report underscores ongoing efforts to diversify global currency reserves away from dollar hegemony.