The United States Treasury Secretary, Scott Bessent, has dismissed the possibility of any currency challenging the US dollar’s dominance in the global financial system. His remarks, delivered during a Fox Business interview, come amid increased efforts by the BRICS nations to reduce reliance on Western currencies in international trade. Despite this trend, Bessent asserted that there is “no alternative to the dollar,” downplaying efforts by countries like China, Russia, and India to settle transactions in their national currencies.

The US dollar has served as the world’s primary reserve currency since the Bretton Woods Agreement in 1944. Its stability, deep liquidity, and widespread acceptance make it the preferred choice for trade, investment, and reserves. Even today, a majority of global trade and central bank reserves are held in US dollars.

Bessent’s confidence in the dollar’s irreplaceable role stems from its historical dominance. “I’ve been in the currency markets for 30-35 years and I can tell you, there is no alternative to the dollar,” he stated. “These [BRICS] other countries can talk about it, they may try to take away our reserve currency status but there is no other reserve currency on the horizon.”

Despite Bessent’s assertions, BRICS nations have been making concerted efforts to reduce dependence on the dollar in trade. The economic bloc, originally composed of Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, Ethiopia, Iran, Indonesia, and the United Arab Emirates. Additionally, Belarus, Bolivia, Kazakhstan, Thailand, Cuba, Uganda, Malaysia, and Uzbekistan are expected to gain official BRICS partner status in 2024. More than 30 other nations have submitted applications to join the group.

One of BRICS’ key economic strategies has been........

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