BRICS: Unexpected Turnaround In The Monetary War Against The United States
As geopolitical rivalries rekindle, dedollarization is once again asserted as a lever of monetary sovereignty. Long a spearhead of this ambition, the BRICS seemed poised to challenge the economic order dominated by Washington. However, a strategic repositioning by Brazil, an influential member of the bloc, disrupts this trajectory. By ruling out the idea of a common currency, the country reshuffles the cards of an already fragile project, revealing the limits of monetary coordination in the face of economic power dynamics.
Realism Triumphs Over Monetary Idealism
While actively supporting the BRICS initiatives aimed at reducing dollar dependence, such as exploring alternative payment systems and gradually adopting blockchain technologies, Brazil has been more cautious regarding the feasibility of a common currency.
In a statement, Brazil’s director of monetary policy, Nilton David, broke the BRICS alliance momentum, announcing that no stock of assets denominated in the group’s currencies is currently substantial enough to compete with the US dollar.
Indeed, he asserted “that there is little chance this will change over the next decade”, referring to the US dollar’s dominance.
A statement heavy with meaning, especially coming from the country holding the rotating presidency of the BRICS bloc in 2025. This turnaround marks a clear retreat from Brazil’s historical positions, as it was once a fervent advocate for a monetary alternative to the dollar-centered system.
In sum, by this declaration, Brazil seems to endorse a truth that many economists have been whispering for months: the dollar’s hegemony cannot be overturned by political will alone.
More than a joint project and symbolic declarations will be needed to erode its dominance.
