In this article. The dollar's share of the world's foreign exchange reserves will fall from 72% in 2002 to 59% in 2024.
The BRICS countries are trying to use their own currencies for trade, with China in particular developing its own payment system.
Despite the recession, the U. S. dollar still dominates global reserves, trade and transactions, and has no real competitor yet. This is 13% less than in the last 22 years.
the dollar is moving away from the BRICS bloc in particular. Over the same period, the Chinese yuan has appreciated by 3%.
the US dollar has been the world's leading reserve currency since World War II. It still accounts for 58% of foreign exchange reserves. However, its walls have already come tumbling down.
the next most important currency, the euro, barely holds on to 20%. Recent global events, such as Russia's invasion of Ukraine, have made countries want to diversify their foreign exchange reserves and reduce their dependence on the dollar.
nThe BRICS countries have openly stated their desire to move away from the dollar. Over the past two years, the BRICS countries have stepped up efforts to promote the use of their currencies in trade.
China, in particular, is actively advocating the expansion of the Cross-Border Interbank Payment System (CIPS).
What are its goals? To create an alternative financial infrastructure independent of the U. S. dollar or SWIFT, the global financial messaging network.
CIPS is growing rapidly, with 62 new members joining between June 2023 and May 2024, bringing the number of direct participants to 142 and indirect participants to 1,394.
SWIFT is still a major player with more than 11,000 connected banks, but CIPS is moving forward step by step. China's desire to use the yuan in international transactions is a direct challenge to the dollar's dominance. Although the yuan's share of global foreign exchange reserves has fallen slightly from 2.8% in 2022 to 2.
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