The recent analysis from the Atlantic Council’s Geoeconomic Center shows that the US dollar remains the world’s leading reserve currency, with neither the euro nor BRICS countries significantly reducing global reliance on the dollar. The report “Overview of Dollar Dominance” highlights the dollar’s continued dominance in global forex reserves, trade invoices, and forex transactions. It is expected to remain the primary global reserve currency in the foreseeable future. Despite efforts by BRICS nations to pivot to other currencies, factors such as a strong US economy, tightening monetary policies, and increased geopolitical uncertainties have bolstered the dollar’s recent global standing.
The report also underscores that sanctions imposed by the G7 on Russia following its invasion of Ukraine have prompted BRICS countries to seek currency alliances. However, substantial progress in reducing dependence on the dollar has yet to be achieved. Read more: 
US inflation data suggests continued rise in oil prices.
The BRICS alliance faces challenges in promoting de-dollarization. The report notes that China’s Cross-border Interbank Payment System (CIPS) has significantly expanded, with 1,394 new direct participants joining between April 2023 and March 2024, bringing the total to 3,142 direct participants and 62,142 indirect participants.
Regarding negotiations, the report suggests that while internal alliance payment systems are in their infancy, bilateral and multilateral agreements within the group could eventually form currency exchange platforms. However, these agreements are complex and challenging to expand.
The report also mentions that once viewed as potential competitors to the dollar, alternative currencies are losing ground. In response to geopolitical risks like sanctions against Russia, reserve managers increasingly turn to gold rather than the euro. Moreover, concerns over macroeconomic stability, fiscal consolidation, and the lack of a single European capital market are weakening the euro’s international position. 