Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen correspondent to southern Lebanon: Israeli warplanes launched a raid on the Ksar Zaatar neighborhood in western Nabatieh.
Al Mayadeen's correspondent in Gaza: The tower destroyed by the Israeli occupation in Gaza includes media offices, including Al Mayadeen's bureau.
Al Mayadeen's correspondent in Gaza: Four fetuses and three premature babies died at Nasser Medical Complex due to malnutrition
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7

BRICS' push to reduce US dollar dominance with digital currencies

  • By Al Mayadeen English
  • Source: Business Insider
  • 28 May 2024 17:44
  • 5 Shares
3 Min Read

The practicality of establishing a common currency is challenging; instead, the BRICS organization has focused on increasing trade and lending in local currencies to diminish reliance on the dollar, writer Huileng Tan says.

Listen
  • x
  • A woman pays with cash as she buys from a street vendor, Sept. 26, 2017 in New York. Despite numbers showing a healthy economy overall, lower-income spenders are showing the strain. (AP)
    A woman pays with cash as she buys from a street vendor, Sept. 26, 2017 in New York. Despite numbers showing a healthy economy overall, lower-income spenders are showing the strain (AP)

An op-ed published on Business Insider by writer Huileng Tan delves into efforts led by the BRICS group in advocating for a move away from US dollar dominance.

Last year, Brazilian President Luiz Inácio Lula da Silva proposed a common BRICS currency, though this idea faced skepticism from economists.

The practicality of establishing a common currency is challenging; instead, the bloc has focused on increasing trade and lending in local currencies to diminish reliance on the dollar.

Christopher Granville, managing director of global political research at GlobalData TS Lombard, suggested that discussions on reducing dollar dependence might gain momentum during the BRICS summit in Kazan, Russia, scheduled for October 22-24.

This comes amid rising tensions between the US and China, and secondary sanctions by Washington on banks processing payments involving Russia, even in local currencies like the Chinese yuan.

A significant development in this context is the interest of central banks in digital-currency transfers. Granville noted that a potential systemic solution involves a platform from the Bank for International Settlements (BIS) that facilitates direct, peer-to-peer settlements of commercial invoices and foreign-exchange trades using central-bank digital currencies (CBDCs).

These currencies are akin to cryptocurrencies but are issued and backed by central banks. In 2022, central banks from China, Hong Kong, the UAE, and Thailand participated in a BIS trial of this system, although it is not yet operational.

Read more: US dollar shares shrink in global reserves amid de-dollarization trend

Related News

Iran urges BRICS sanctions shield as Brazil backs fairer global system

Expert: too early for single BRICS currency, more action needed

Russian Foreign Minister Sergey Lavrov has promoted a digital-currency-based settlement system, which Granville interprets as an indication that central banks are considering a "US-insulated" solution.

This solution seems particularly relevant for China amidst its trade conflict with the US, as China already has a well-developed digital currency, the digital yuan, used domestically for various payments.

However, the BIS suspended the Russian central bank's membership following Russia's launch of its special military operation in Ukraine in 2022, creating uncertainty about how Russia would participate in the digital-currency platform.

Despite this, Granville argues that the involvement of other central banks in a CBDC system could challenge the US dollar's dominance in international payments.

The US dollar accounted for 60% of international payments outside the eurozone in 2023, down from its 80% share in trade finance and 60% in global foreign-exchange reserves.

Read more: Russia, China reach near complete de-dollarization in bilateral trade

Another recent report by Business Insider detailed that while the West cannot fully isolate Russian banks from the SWIFT messaging network due to the adverse impact on trade finance, reducing the US dollar's share in international payments through a non-dollar CBDC platform could undermine one of the pillars of the dollar's global reserve currency status.

This shift could weaken the dollar's role in cross-border payments, even though trade finance and FX reserves remain more critical.

Despite the potential benefits, implementing central-bank digital currencies faces challenges. Even China, with one of the most advanced digital currencies, employs a "two-tier" system where banks act as wallet-holding agents to prevent disruption to the financial sector and maintain stability. 

  • BRICS
  • Russia
  • Dollar
  • Sanctions on Russia
  • China
  • de-dollarization

Most Read

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

American far-right activist Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025
A screengrab from the ad played on Fox News. (X Screengrab)

Fox airs ad warning Trump not to let Netanyahu 'play' him on Gaza

  • US & Canada
  • 11 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
President Nicolas Maduro gestures to supporters during the inauguration of a monument in China's honor on the 80th anniversary of the end of World War II, in Caracas, Venezuela, Wednesday, September 3, 2025 (AP)
Politics

Maduro warns of threats, urges 'battle for truth' to defend Venezuela

Damage is seen after an Israeli strike targeted a compound that hosted Hamas' political leadership in Doha, Qatar, Wednesday, Sept. 10, 2025. (AP Photo/Jon Gambrell)
Politics

Netanyahu informed Trump before deadly attack in Doha: Reports

Israeli Prime Minister Benjamin Netanyahu and US Secretary of State Marco Rubio hold a joint press conference at the Prime Minister's Office, during Rubio's visit, in occupied al-Quds, occupied Palestine, Monday, September 15, 2025 (AP)
Politics

Netanyahu warns of Israeli isolation, calls to boost self-reliance

Spain axes €700Mln arms deals with 'Israel' over Gaza genocide
Politics

Spain axes €700Mln arms deals with 'Israel' over Gaza genocide

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS