Is De-dollarization Failing? The Triumph of the US Dollar Over BRICS Currencies"

As the BRICS alliance intensifies its efforts toward dedollarization, the success of this initiative remains uncertain. Although several countries are considering joining or have already joined this movement, the supremacy of the US dollar remains unchallenged. Indeed, despite coordinated efforts from BRICS member countries, the dollar continues to outshine the currencies of these nations.

The Supremacy of the US Dollar Over BRICS Currencies

The US dollar displays overwhelming dominance over the currencies of BRICS countries as evidenced by the DXY index. This stock market index, which measures the value of the American currency against six other foreign currencies, is currently at 106.22 points. This represents a significant increase from its lowest level of 101.8 points last January.

While the US dollar is clearly advancing, the same cannot be said for the yuan. The Chinese currency has dropped to its lowest level in five months and is positioned at 7.24 points against the dollar.

The Indian rupee is not far behind. The currency of this influential BRICS member has recorded one of its worst performances by reaching 83.63 points at the beginning of last week. It eventually experienced a slight rebound and is established at 83.54 points.

Finally, the Russian ruble has also registered a significant devaluation, falling below the 100-point mark and positioning itself at 94.15 against the US dollar. This value reflects the difficult period that the Russian economy is going through, impacted by international sanctions and growing instability.

DESPITE EFFORTS TO CHALLENGE THE U.S. DOLLAR, BRICS CURRENCIES FALTER AGAINST THE USD, WHICH ALSO OUTPERFORMS GOLD, OIL, AND OTHER COMMODITIES GLOBALLY.

Pero pero Pero Pero el dólar va a morir el fin de USA etc etc etc

Remember: pic.twitter.com/v577JVnshD

— Razor (@RazRoad) April 21, 2024

Other Local Currencies Outclassed by the Dollar

The Japanese yen has suffered the repercussions of the dollar’s strength and has fallen to its lowest level since 1990. The dramatic drop of this currency demonstrates Japan’s difficulty in competing with the vigor of the US dollar. This decline negatively affects the country’s economy, particularly in export-dependent sectors.

The British pound has also been weakened by the mighty dollar. It currently stands at around $1.25, its lowest level in four months. A decline that reflects the current economic and political uncertainties in Great Britain.

The dollar continues to dominate the foreign exchange markets, significantly influencing the economies of several countries. Despite dedollarization initiatives, the American currency demonstrates remarkable resilience and strength and does not intend to lose ground in its battle against the BRICS.