BRICS Dumps the Dollar: Yuan Now Dominates 50% of Trade Transactions

The USD's reign takes a hit as BRICS nations pivot hard to the yuan—half of all transactions now flow through China's currency. No more asking 'who's your daddy?' in trade settlements.

Redrawing the financial map

Forget SWIFT—BRICS is building its own playground. The bloc's rejection of dollar dominance isn't just posturing; it's a full-scale financial mutiny with the yuan as its battle standard.

Western banks scrambling

Watch legacy institutions sweat as 50% of BRICS trade bypasses dollar rails. Those 'stable reserve currency' lectures? Suddenly sounding real nostalgic.

The closer: Maybe the Fed should've bought some yuan reserves instead of another round of quantitative easing. Just saying.

BRICS Using Chinese Yuan & Other Local Currencies, USD Being Abandoned

Though this sounds big in the microeconomic scope, the larger picture is much different in the macroeconomic lens. Despite the Chinese yuan being used for 50% of all intra-BRICS transactions and not the USD, it only accounts for 2% in global payments. The US dollar, on the other hand, commands 88% of all foreign exchange transactions and settlements. There’s a difference of heaven and earth between the two, and the yuan is nowhere close to challenging the greenback.

China is only using BRICS as a currency vehicle to shake the dominance of the USD in the global markets. Russia and Iran are following China’s footsteps to safeguard their economies from sanctions pressed by the WHITE House. Other countries have started using the US dollar for transactions, fearing Trump’s tariffs and trade wars. India has especially made several statements against de-dollarization and openly embraced using the US dollar for trade and payment settlements.