Despite promoting de-dollarization within BRICS, the US dollar maintains its dominance in the global financial system

CryptoMom · 2026-02-14T13:15:04+00:00

BCA Research's analysis reveals that despite BRICS nations transitioning to regional currencies, the US dollar remains dominant in five key areas of the international financial system, influenced by deep-rooted network effects.

CryptoMom

2026-02-14 13:15:04

Abstract generation in progress

The latest analysis report by BCA Research presents intriguing findings. Despite BRICS countries advancing their transition to regional currencies, the US dollar continues to maintain a dominant position in the five key areas of the international financial system.

This analysis evaluates the actual impact of BRICS countries’ de-dollarization strategies using a newly developed dollar dominance indicator. An important point highlighted in the report is that the US dollar’s supremacy is not merely due to historical inertia but is supported by deep-rooted network effects. Transitioning from the existing dollar-dependent system—spanning international settlements to foreign exchange markets—requires countries to face significant adjustment costs.

According to NS3.AI’s report, although BRICS member countries are making efforts to establish new payment mechanisms, these initiatives alone are unlikely to significantly shake the US dollar’s dominance in the short term. For global users and institutional investors, shifting away from the dollar-based system still presents substantial hurdles.

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