The BRICS alliance is on a quest to upend the US dollar and replace its dominance with local currencies. The shift towards settling trade in local currencies has been on the rise since the White House pressed sanctions on Russia in 2022. Developing countries are sidelining the US dollar for cross-border transactions and increasingly using local currencies for payment settlements.

Also Read: India Officially Dismisses BRICS Currency, Praises the US Dollar

Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. The greenback stands at the crossroads of a global change that could deplete its power and control over the world’s financial markets. Such a development could wreak havoc on the American economy leading to a major shift and market collapse.

Also Read: BRICS: Nobody Will Trust the US Dollar Again

BRICS: Deutsche Bank Predicts US Dollar is On the Losing Side

Deutsche Bank wrote in its recent note to stakeholders that the US dollar could end up being on the losing side. The report comes after the BRICS alliance aggressively pursued the de-dollarization agenda to topple the US dollar. “We do not write this lightly. But the speed and scale of global shifts is so rapid that this needs to be acknowledged as a possibility,” said George Saravelos, the Deutsche Bank’s Global Head of FX strategy, in a note to clients.

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The bank wrote that the US dollar is not “strengthening materially” as BRICS advances the de-dollarization initiative worldwide. “It is hard to over-estimate the scale of change taking place in global economic and geopolitical relations in a matter of days. What stands out in today’s market reaction is that the dollar is not strengthening materially. We would not have expected these market moves at the start of the year.” Saravelos stated.

The note also read that the geopolitical shift will usher in a weaker dollar making BRICS take the win. “Bringing it all together, we are starting to become more open-minded to the prospects of a broader, weaker trend unfolding” for the dollar. “Two pillars of America’s role in the world are being fundamentally challenged: the US’s security backstop for Europe and the respect of rules-based free trade.” Deutsche Bank summed it up.