JP Morgan Flags BRICS Push as US Dollar Faces Erosion of Dominance

JP Morgan's currency strategists have sounded alarms over the accelerating de-dollarization trend, with BRICS nations' gold-backed currency initiatives gaining tangible traction. The bank's analysis identifies three structural threats to dollar hegemony: diversification by central banks, commodity market shifts, and geopolitical fragmentation.

Market participants are now pricing in a faster-than-expected BRICS currency rollout, with infrastructure preparations suggesting a functional prototype could emerge within 12-18 months. Gold reserves have doubled as a percentage of BRICS nations' assets since 2020, creating substantive backing for any new currency.

The dollar index has slipped 2.3% against a basket of emerging market currencies this quarter, while Bitcoin and ethereum have seen 18% and 22% gains respectively - a divergence that suggests crypto markets are anticipating monetary regime change.