BRICS Gains Ground as Global Investors Shift Away from USD-Dominated Assets

The US dollar's hegemony as the default investment currency is facing unprecedented challenges. BRICS nations—China, India, Brazil, and South Africa—are now attracting institutional capital that once flowed almost exclusively to dollar-denominated assets. The DXY index's plunge to 96 this week underscores a broader trend: exposure to USD assets has hit an 18-year low according to Bank of America research.

Developing economies are capitalizing on this seismic shift. Southeast Asian markets in particular have benefited from trade policy shifts, with Trump-era tariffs accelerating the redistribution of global capital. While US Treasuries remain a cornerstone asset, early movers into BRICS markets are seeing outsized returns compared to traditional fixed-income instruments.

Currency internationalization adds another dimension to this financial realignment. China and India are leveraging the momentum to promote yuan and rupee usage in cross-border transactions—a strategic MOVE that could reshape global reserve currency dynamics in the coming decade.