U.S. Treasury: BRICS Will Not Find an Alternative to the Dollar
Washington remains confident that no currency will replace the dollar in the near future
U.S. Treasury Secretary Scott Bessent stated that while BRICS countries aim to reduce their dependence on the dollar, the creation of a new reserve currency remains unlikely in the foreseeable future.
Bessent’s Key Statements:
- "I have worked in currency markets for 30-35 years, and I can confidently say that there is no replacement for the dollar."
- He argues that no other currency has the necessary liquidity or trust to challenge the dollar's dominance.
- BRICS nations may discuss alternative mechanisms, but they will not be able to strip the U.S. of its status as the issuer of the world’s reserve currency.
Why Is This Important?
- BRICS is actively exploring the expansion of trade settlements in local currencies, especially following Western sanctions on Russia.
- China and Brazil already trade in yuan, while India partially pays for Russian oil in rupees.
- However, the lack of a unified currency, investor confidence, and deep financial markets prevents the emergence of a real alternative to the dollar.
Bessent’s remarks reaffirm Washington’s confidence in the dollar’s long-term dominance, despite BRICS efforts to diversify global financial transactions.
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