BRICS Accelerates De-Dollarization as US Financial Influence Wanes

The decline of US dollar dominance is no longer theoretical—it's unfolding through coordinated BRICS efforts. Economist Jeffrey Sachs frames this as a structural shift: Washington's grip on global finance weakens as multilateral institutions like the IMF and World Bank face diminishing credibility. The geographic concentration of power along Pennsylvania Avenue now works against American interests.

Brazilian President Lula's critique of dollar hegemony resonates across emerging markets. With BRICS economies representing nearly half the world's population, their push for alternative settlement systems gains momentum. This isn't merely about currency preferences—it's a reconfiguration of financial infrastructure away from SWIFT and dollar-denominated reserves.

Sachs notes the irony: US isolationism has accelerated the very de-dollarization it sought to prevent. The rise of bilateral local-currency agreements between BRICS members demonstrates this pivot. Oil markets exemplify the trend, with Petrobras and Rosneft increasingly settling trades in yuan and rupees.