The BRICS alliance is looking to replace the US dollar on the global stage with local currencies. The bloc wants their respective national currencies to thrive and make the greenback sit in the rear seat of the economy. The de-dollarization agenda is gaining steam worldwide as emerging economies are prioritizing local currencies to push their GDP.

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The greenback is at risk of losing its global dominance as many countries are considering ending reliance on the currency. However, Singapore’s Central Bank head Chia Der Juin, touched on the BRICS subject of de-dollarization and explained whether the US dollar can be replaced in the financial sector.

Also Read: BRICS: Standard Chartered, Deutsche Bank Predict US Dollar’s Future

BRICS: Singapore Central Bank Head Reveals If the US Dollar Can Be Replaced

The Singapore Central Bank’s head revealed that the US dollar is irreplaceable and no BRICS currency can take its place. He said that the US dollar-based assets have “enduring advantages” and remain virtually irreplaceable in the global markets. “The $28-trillion Treasury market is fundamental and systemic to the global financial system and there is no alternative for this point,” he said.

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BRICS might find it hard to replace the US dollar as its foundation is strong, according to Singapore’s Central Bank head. He even touched on the topic of institutional Asian funds buying US-based assets for better profits. “There is generally an overweight exposure to US assets from Asian investors. In fact, most of it is unhedged. So some changes in that sentiment and the read of the direction of the market can cause an outsized reaction,” Chia said.

In conclusion, Singapore’s Central Bank head is relatively optimistic about the US dollar-based assets than the BRICS currencies. No national currency is fit enough to withstand the whiplash of the financial markets. Only the greenback is a seasonal contender and can push its weight across even during troubled waters.