BS EDIT: False Alarm: No Real Threat to the Dollar’s Dominance

By Business StandardPublished On Dec 5, 2024

Currency Debate

Trump's 100% tariff warning to BRICS over replacing the dollar stirred debate but holds little credibility in current global financial dynamics

Dollar’s Dominance

The dollar dominates globally, used in 90% of trades and holding 60% of forex reserves, reflecting its entrenched economic role

BRICS Currency: A Far-off Concept

A BRICS currency lacks a framework, while China's yuan faces barriers like capital controls and limited trust, posing no real threat to the dollar

Challenges to Dollar in US

US policies, like dollar weaponisation and trade strategies, risk eroding trust and limiting supply, pushing global players to explore alternatives

India’s Dollar Dependence

India relies on the dollar for trade and reserves; despite GIFT City efforts, its stability and alignment with India’s interests keep it indispensable

The Path Forward

The dollar's dominance relies on US trust and policies. India must stay prepared for shifts while prioritising its interests in global trade