BRICS vs. the Dollar: De-Dollarization Push or Just Another Cycle?

The BRICS bloc—Brazil, Russia, India, China, and South Africa—is doubling down on its de-dollarization playbook. But is this a genuine threat to the greenback’s dominance, or just another blip in the dollar’s eternal rinse-and-repeat cycle?

Gold hoarding, local currency trade deals, and even whispers of a BRICS crypto—every move smells like a middle finger to SWIFT. Yet the dollar’s still the heavyweight champ of reserve currencies (for now).

Here’s the cynical kicker: if history’s taught us anything, it’s that financial empires don’t collapse—they inflate their debts into irrelevance while bankers cash out early. Place your bets accordingly.

US Dollar in Concerning Predicament as BRICS & United States Policy Drive It Down

Just one week ago, Goldman Sachs gave a gloomy prediction for the future of the US dollar. Indeed, the bank aligned with the prevailing belief that the global reserve asset could be on its way toward a concerning position. Not only has it faced pressure from growing de-dollarization efforts, but it has now felt the ire of nations challenged by US tariff plans.

That has provided a key question for both the Western nation and its global south opposition. Is BRICS driving the US dollar to a notable down cycle or pushing it closer to collapse? The economic alliance has, for the last several years, remained at the forefront of alternative currency promotion and development. That could only fast-track this year.

The US dollar DXY Index has recently fallen to a three-year low. Moreover, the greenback has struggled amid a concerning first 100 days for US President Trump. Additionally, a report from The Hill notes that “foreign investors appear to be reappraising the role of US Treasury securities as a global haven asset” amid the administration’s actions in recent months.

So What’s Next?

With US fiscal net interest payments on its debt reaching $949 billion and surpassing its defense spending, there is even more reason to worry. Historian Barry Eichenberg told the publication that Trump “should be promoting financial stability, limiting the use of tariffs, and strengthening America’s geopolitical alliances.”

That has not taken place. In fact, the opposite has. Subsequently, there is reason to believe the BRICS bloc is playing a key role in helping the US decimate the value of its dollar. Since 2024, it has sought to limit its exposure to the currency. A key reason has been its weaponization.

Moreover, it shifted its attention to gold. Indeed, many nations in the alliance have ramped up their purchasing of the metal with eye on a continued de-dollarization approach. With gold surging, there should be a reason for the United States to emphasize a shift in philosophy. That is, before a US dollar downcycle becomes a full-blown collapse.