dedollarisation

$BTC $USDC The sharp weakening of the US dollar in recent years, led by unconventional policy positions from former President Trump who views the weaker dollar as beneficial for American exports and domestic industries. At the same time, BRICS countries are intensifying efforts to reduce dependency on the US dollar by transacting in their own currencies, buying large amounts of gold, and developing alternative payment infrastructures such as BRICS Pay to displace systems like SWIFT. Treasury officials reiterated a commitment to a "strong dollar policy" based on economic fundamentals, but the tension between a weak dollar to aid exports and maintaining the dollar's reserve currency status poses significant geopolitical and economic challenges.
Market Sentiment
Investor sentiment is mixed, characterized by cautious optimism among exporters and domestic manufacturers who benefit from a cheaper dollar, contrasted with anxiety among consumers and import-dependent businesses facing rising costs and inflation. The market is closely watching Federal Reserve policies and Treasury communications, which attempt to balance the narrative of a strong dollar with reality of ongoing depreciation. Social media and investor forums reflect concerns about a weakening dollar signaling deteriorating US economic strength, amplified by heightened interest in alternative currencies and de-dollarization news from BRICS, which fuels uncertainty and speculation.
Past & Future Forecast
- Past: Historically, periods of dollar weakness, such as in 2017, have correlated with increased export competitiveness but have also sparked inflationary pressures and shifts in global capital flows. Previous de-dollarization efforts have been slow and limited, mostly experimental.
- Future: If the trend continues, we could see accelerated global currency diversification with BRICS and other blocs expanding their bilateral trade in local currencies, potentially reducing US influence in global finance. Quantitatively, the dollar could face ongoing pressure leading to further declines in the range of 5-10% throughout 2026, while alternative payment systems gain traction. However, economic fundamentals like US interest rates and capital inflows will remain key determinants.
Resultant Effect
The declining dollar combined with BRICS de-dollarization efforts could weaken the US’s ability to finance deficits cheaply, increase inflationary pressures domestically, and lead to a reconfiguration of global trade and finance systems. This may increase volatility in FX markets and raise geopolitical tensions, as seen in tariff threats targeting BRICS. The move might inspire other emerging markets to pursue similar strategies, potentially fragmenting the global financial system and creating multiple reserve currencies, which would complicate international trade and investment flows.
Investment Strategy
Recommendation: Hold
- Rationale: The dollar's weakening and BRICS de-dollarization represent medium- to long-term structural shifts with significant uncertainty. While a weaker dollar supports US export-oriented sectors and some multinational corporations, rising inflation and potential geopolitical risks introduce volatility and downside risk.
- Execution Strategy: Maintain current holdings in US-dollar-based assets while monitoring key technical indicators and macroeconomic fundamentals closely. Consider incremental diversification into assets with exposure to emerging market currencies and gold-backed instruments as a hedge.
- Risk Management: Use trailing stop losses to protect gains amid volatility. Limit concentration risk by maintaining a balanced portfolio across asset classes. Stay alert to central bank announcements, macroeconomic data, and geopolitical developments that might accelerate dollar volatility or trigger market shifts.
- This cautious stance aligns with institutional investors who balance exposure to traditional US assets with emerging risks from geopolitical currency shifts, emphasizing capital preservation and adaptive portfolio management.#bricsdedollarisation #weakerdollar #DeDollarisation

While the \text{crypto} \text{world} focuses on \text{Bitcoin's} \text{\$111K} \text{run} and \text{meme} \text{coin} \text{frenzy}, \text{a} \text{tectonic} \text{shift} is underway in traditional global finance that \text{CANNOT} be ignored! 🏦💥
The \text{De}-\text{Dollarization} \text{Surge} 📈
\text{الصين} is accelerating the move away from the \text{U.S.} \text{دولار} (\text{USD}) by massively expanding \text{CNY}-\text{settled} trade. Key \text{حلفاء} and trading partners are now onboard:

عملة البريكس – مدعومة بأصول حقيقية

تُتصور عملة البريكس كأداة مالية ثورية مصممة لتحدي هيمنة الدولار الأمريكي في التجارة العالمية. على عكس العملات الورقية التي تعتمد فقط على ثقة الحكومة، فإن هذه العملة مدعومة بأصول ملموسة ومتنوعة – مما يجعلها مخزنًا مستقرًا وموثوقًا للقيمة.

🔹 دعم احتياطي الذهب – يضمن قيمة جوهرية ويحمي من التضخم.
🔹 ربط النفط الخام – يربط العملة بأكثر السلع تداولاً في العالم، مما يعزز دورها في أسواق الطاقة.