In one of the biggest developments of the last two years, the BRICS bloc has sought to challenge the dominance of the US dollar. Although its de-dollarization process persisted in 2024, the economic alliance has failed to make a significant impact. Now, all eyes are on if it stands a chance in 2025.
According to data from TradingView, a majority of major currencies have fallen against the US dollar. Indeed, the metrics show that the greenback ensured its strength through a resilient American economy. Contrarily, economic activity slowing in China and the Eurozone failed to create an environment for thriving de-dollarization.
Source: OilPrice
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First created in 2001, the BRICS economic alliance has grown into a legitimate global force. The bloc has continued to expand, although its geopolitical implications have become a point of contention. Amid its increased de-dollarization efforts, the group has proved no match for the strength of the West.
Recent data show that the BRICS collective failed to truly challenge the US dollar in 2024, with its eyes now on succeeding in 2025. Over the course of the last twelve months, the Chinese yuan and Indian rupee both fell 2.8% against the dollar. Additionally, the Russian ruble fell 18.6% against the greenback.
Source: Visual Capitalist
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A big reason for the outcome is the United States’ ability to continue its economic recovery. The country’s inflation has fallen from its 40-year high to settle just above the Central Bank’s target. Throughout the last year, it has become one of the best-recovering countries from the 2020 pandemic.
That hasn’t proven true for the rest of the world. Now, all eyes are on the incoming Trump administration. The US President-elect has already issued a stark warning to the BRICS bloc and those seeking to ditch the US dollar. However, his policies could have massive implications. Whether or not the greenback is challenged remains to be seen, but such a challenge would certainly come with a cost.
