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The Central Bank of Brazil believes that emerging countries within the BRICS bloc are unlikely to build sufficiently large markets to undermine the dominant role of the USD in the next 10 years. This statement was made by the Director of Monetary Policy Nilton David on Monday.

"Currently, there are no assets denominated in BRICS that are large enough to replace the USD. I think that will not change in the next decade," Mr. David remarked.

This official acknowledged that alternative payment instruments may become more common, helping to boost bilateral trade agreements. However, that is not enough to weaken the role of the USD in the near future.

BRICS is an acronym for a group of large emerging economies consisting of Brazil, Russia, India, China, and South Africa. These countries cooperate to address global issues. Recently, this group has expanded by adding 6 members including Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.

In February, Reuters reported that under Brazil's rotating presidency of BRICS this year, the bloc would temporarily shelve plans to establish a common currency. Instead, the bloc is focusing on reducing dependence on the USD, such as connecting payment systems and researching blockchain standards set by organizations like the Bank for International Settlements (BIS).

U.S. President Donald Trump has repeatedly warned the BRICS group not to challenge the dominant position of the USD.

Established in 2009 and soon expanded with the inclusion of South Africa, BRICS is increasingly becoming a diplomatic counterweight.