brics

$BTC $XLM An ongoing trend among BRICS nations to reduce their dependence on the US dollar as a reserve currency. According to IMF data, the share of US dollar reserves held by central banks worldwide has decreased from 58.2% in 2024 to 56.92% in January 2026. This downward trajectory stems from BRICS countries actively selling US dollar assets and significantly increasing their gold reserves — purchasing over 1,100 tons in 2025 alone, which is the largest annual increase in seven decades. Additionally, local currency usage by BRICS in trade and finance further challenges the dollar's dominance. This shift indicates growing de-dollarization, which could weaken the US dollar's status as the global reserve currency over time.
Market Sentiment
Investor sentiment is characterized by increasing concern over the US dollar's durability as the world's primary reserve currency. The shift toward gold and local currencies by BRICS nations reflects a strategic hedging behavior and reduced confidence in USD stability. On social media and financial forums, there is an emerging narrative about potential currency realignments and the implications for global reserves. This transition stirs a mix of uncertainty and cautious optimism about alternative assets like gold and emerging market currencies. Although the US dollar remains dominant, quantitative data such as the 1.28% drop in reserve share over two years and historic gold purchases supports the realism of de-dollarization fears.
Past & Future
-Past: Historically, the US dollar's reserve dominance has been challenged before, notably with the rise of the euro in the late 1990s and early 2000s, which temporarily gained a notable share before stabilizing. The gold standard era ended decades ago, but gold has consistently been seen as a safe haven during times of currency uncertainty.
-Future: If this trend continues, IMF data may reflect further declines in the dollar's share toward mid-50%s or even lower in the next 3-5 years, potentially accelerating if global geopolitical tensions persist and alternative payment mechanisms mature. Gold could continue to appreciate as central banks diversify, and emerging markets may increasingly use local currency trade settlements, diminishing USD reliance. Projects like BRICS-led payment systems could further institutionalize this shift.
Ripple Effect
The decreasing dominance of the US dollar could have broad ripple effects across global finance. Reduced demand for USD reserves may weaken the greenback, increasing volatility in currency markets and impacting US interest rates and borrowing costs. The global financial system, heavily dollar-centric, may face adjustments with increased multi-currency reserve holdings, causing shifts in asset prices and capital flows. For the crypto market, this could spur increased interest in decentralized and non-sovereign assets as investors seek alternatives amid currency diversification. However, uncertainties remain, including how quickly other currencies can scale and the geopolitical responses by the US and allies.
Investment Strategy
Recommendation: Hold
- Rationale: While the news signals a significant fundamental shift toward de-dollarization, the process is gradual and the US dollar remains a dominant reserve currency; thus, immediate drastic portfolio changes are premature. The cautious approach balances awareness of geopolitical risks and shifts in reserve asset composition without overreacting to transitional trends.
- Execution Strategy: Maintain current positions in USD-based assets and gold, monitoring technical and fundamental signals of currency shifts. Consider gradual accumulation of gold or gold-related assets as a hedge via laddered buys at dips supported by technical indicators.
- Risk Management: Use trailing stop-losses for gold holdings to protect gains and limit downside. Diversify across currencies and asset classes to mitigate risks from potential volatility in the USD during this transition. Keep abreast of geopolitical developments and IMF reserve data updates for timely reassessment.
This hold recommendation reflects Wall Street institutional investor strategies emphasizing steady risk-managed exposure to diversification themes without premature sell-offs of core USD assets.#brics #BRICSDigitalCurrency #BRICSCryptoRevolution $BTC

Principal Content
$BTC $BNB $ETH The article details the ongoing decline of the US dollar, driven by BRICS countries developing a parallel financial system that bypasses traditional Western-controlled channels. Key elements include linking central bank digital currencies (CBDCs) like the e-rupee and digital yuan, creating direct digital payment pathways among BRICS members, and increased bilateral trade in national currencies—already covering 90% of Russia-China trade. BRICS nations also leverage their substantial control over critical natural resources and huge gold reserves to support commodity-backed trade, strengthening their position against the dollar. The expiration of the petrodollar agreement with Saudi Arabia marks a significant turning point, with new trade arrangements in yuan and commodities expanding. Nonetheless, implementation of a fully interoperable system faces technical and political challenges and is projected for 2028-2030, with the US dollar retaining a dominant but likely shrinking role in the global economy.
Market Sentiment
Investor sentiment currently shows heightened concern and uncertainty regarding the long-term dominance of the US dollar. The 1.3% one-day dollar drop—the largest since April 2025—reflects growing anxiety over geopolitical shifts and declining trust in US monetary hegemony. The dismissive rhetoric from US political leaders appears to contrast with market realities, amplifying a cautious yet watchful mood among investors. Social media trends and expert analyses increasingly discuss de-dollarization and multipolar currency futures, generating a mixture of apprehension and speculative optimism about a new global order. Quantitatively, the dollar index approaching lows unseen since early 2022 reinforces bearish signals on the currency.
Past & Future Forecast
- Past: Historical parallels include the gradual erosion of the British pound post-World War II and the extended battle for reserve currency status leading to the US dollar's rise after Bretton Woods in 1944. Similar structural transitions in reserve currencies took decades, with geopolitical and economic shifts underpinning gradual devaluation.
- Future: Looking forward, the dollar index could dip toward 94 by mid-2026, reflecting pressure from trade reorientation and BRICS progress. The full BRICS financial infrastructure rollout is unlikely before 2028-2030 due to required technological and diplomatic convergence. Nonetheless, the dollar will remain central but increasingly challenged in a multipolar currency landscape. Investors should anticipate continued volatility and potential reallocation toward commodities, gold, and CBDC-linked assets.
The Effect
The BRICS-led de-dollarization initiative poses systemic risks to global financial stability by fragmenting the traditionally US-dominated currency and payment networks. Disruptions in trade financing, shifts in foreign exchange reserves, and increased competition among currencies can elevate market volatility. Countries dependent on dollar liquidity might face higher borrowing costs, and geopolitical tensions could intensify as economic influence diffuses. Although the dollar won’t disappear, its weakened anchor status may trigger capital flow rotations and necessitate rethinking macro-hedging strategies. Quantitatively, a sustained dollar decline above 5-10% over months could exacerbate these ripple effects.
Investment Strategy
Recommendation: Hold
- Rationale: The news signals a transformational, but gradual shift away from dollar dominance rather than an immediate collapse. While prices and macro risks suggest caution, the dollar’s entrenched position and the long timeline for BRICS systems justify maintaining current positions without aggressive changes.
- Execution: Maintain existing dollar-related holdings and gradually accumulate commodity-related assets and gold as hedges. Monitor dollar index technical levels, especially the 94 forecast for Q2 2026, and watch moving averages and volume for signs of trend changes.
- Risk Management: Use trailing stops on dollar investments to protect against sharp dips while allowing participation if the dollar stabilizes. Diversify across currencies and digital assets linked to emerging CBDCs to benefit from potential shifts.
This cautious hold strategy aligns with institutional investor approaches that balance protection against structural risk with the dollar’s still dominant role in global finance, emphasizing risk-adjusted returns and phased exposure rather than speculative moves.#BRICS #bricsdedollisation #BRICSDigitalCurrency

$BTC A structural shock to the US dollar caused by the coordinated efforts among BRICS nations to decrease dependence on the dollar as the global reserve currency. Central Bank digital currencies (CBDCs) play a pivotal role in this strategy, with the Reserve Bank of India advocating linking CBDCs, and Russia and China settling nearly 90% of bilateral trade in non-dollar currencies like rubles and yuan. Additional initiatives such as BRICS Pay and the blockchain-based Unit, alongside the New Development Bank's plan to lend 30% in local currencies by 2026, demonstrate a move toward alternative financial systems. These developments are accompanied by increased gold hoarding as a safe reserve alternative, motivated by fears of dollar weaponization through sanctions.
Market Sentiment
Investor sentiment is marked by growing concern and cautious uncertainty about the long-term stability of the US dollar as the uncontested global reserve currency. The narrative of structural change injects anxiety over geopolitical and economic shifts, prompting risk awareness among global investors and governments. The social media and forums observe mixed debates, with some market participants optimistic about diversifying reserve assets and others anxious about potential short-term volatility in currency and commodity markets. Quantitative signals such as a decline in the dollar's share of global reserves below 40%—a level not seen in approximately 20 years—serve to heighten market sensitivity.
Past & Future Forecast
- Past: The dollar's dominance as a reserve currency has been largely unchallenged since the Bretton Woods agreement after World War II. Previous periods of attempted challenges, such as the rise of the euro and China's yuan internationalization efforts, have only caused limited shifts. The 2008 financial crisis highlighted vulnerabilities, but none triggered structural changes comparable to those now posed by BRICS coordination.
- Future: If BRICS nations successfully implement linked CBDCs and widely adopt alternative payment systems, the dollar's share in global reserves may fall further, potentially below 30% over the next decade. This could correspond to increased volatility in FX markets and commodity prices, with gold gaining prominence. Macro-financial adjustments will likely follow, including changes in global lending and trade patterns. Policymakers worldwide may either resist or accommodate these changes, influencing the pace and scale of the dollar's structural decline.
The Effect
The structural shock to the US dollar may trigger broad, systemic impacts beyond currency markets. For instance, US financial institutions could face diminished demand for dollar-denominated assets, impacting Treasury yields and US borrowing costs. Emerging markets may reduce dollar-based debt, altering global credit dynamics. The shift towards CBDCs and blockchain solutions may accelerate fintech innovation but also increase fragmentation of global payment standards. Increased gold demand could stiffen commodity markets. There exists risk of escalation in trade tensions, especially if the US enforces retaliatory tariffs, further unsettling global economic stability.
Investment Strategy
Recommendation: Hold
- Rationale: The US dollar’s structural challenges represent a significant long-term trend but with substantial short- to mid-term uncertainty and geopolitical risks. Investors should maintain existing positions but prepare for increased volatility and potential market realignments.
- Execution Strategy: Retain diversified portfolios with partial exposure to dollar assets, increase vigilance on technical indicators related to major FX pairs and gold prices, and cautiously accumulate assets linked to emerging market currencies and blockchain innovations as hedges.
- Risk Management Strategy: Employ trailing stops on dollar-denominated assets to protect against downside risk amidst geopolitical escalations; avoid overconcentration; monitor geopolitical developments and central bank communications closely. Given the unpredictable pace of this transition, readiness to adjust positions in response to rapid market and policy shifts is essential.
This strategy reflects institutional investor discipline emphasizing capital preservation amid complex geopolitical shifts while positioning judiciously for structural financial evolutions.#brics #CBDC #USDolloar