Columnists argue that moving away from the dollar could reshape global power dynamics, potentially weakening the United States’ financial leverage over other nations. The New York Post presents this view as a pivotal challenge to American dominance in the world economy.
“The dollar’s role as the world’s main reserve currency underpins America’s leadership on the global stage. It allows the United States to influence international financial policy and compels other nations to align with decisions made in Washington, rather than the other way around,” the piece notes.
De-dollarization is seen by some as a way for states that have faced sanctions to gain greater autonomy. Critics warn that such a shift could ripple through the domestic economy, affecting growth and confidence in the dollar itself.
“If demand for the currency wanes, exports could become cheaper, but the dollar’s buying power and credibility could suffer. Higher interest rates and inflation might pressure the stock market and complicate funding for large federal deficits,” the authors caution, suggesting the trend could gain momentum.
Who is challenging the dollar?
The BRICS group, initially composed of Brazil, Russia, India, China, and South Africa, announced expansion plans that would bring additional nations on board after a recent summit in South Africa. Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates were invited to join, signaling a major step toward broadening the bloc’s energy and economic influence.
Analysts argue this move could weaken the dollar’s long standing reach, particularly in oil markets, by allowing BRICS members to settle energy transactions in their own currencies. The authors describe the oil market as a key arena where the bloc could gain influence, presenting a real challenge to dollar dominance.
Reports indicate more than 40 countries have shown interest in joining BRICS, though only a subset has been admitted. The admission process, while not fully disclosed, appears to be influenced by energy considerations and strategic alignments.
As BRICS aligns six large oil producers with major importers, the coming year could see a notable shift in how energy payments are executed. While most oil trades are still denominated in dollars, payments in Chinese yuan and Russian rubles have begun to rise gradually.
Observers note that Saudi Arabia’s recent cooperation with Russia on oil production helps explain spikes in oil prices, underscoring how geopolitics intersects with energy markets. The New York Post points out that BRICS nations collectively account for a significant share of the world’s population and GDP, presenting a credible counterbalance to the G7 bloc. The piece suggests that BRICS membership may found new ways to limit the United States’ ability to use the dollar as a policy tool against disliked actors.
A wary forecast
Maria Zakharova, the official representative of the Russian Foreign Ministry, has described de-dollarization as a reality, labeling the dollar a currency facing structural challenges. She argues that the shift is less a goal of particular entities and more an ongoing truth of the global financial system, speaking to a broader sense of change in international finance.
Oleg Deripaska, a Russian entrepreneur, has offered a forward-looking view as well. He predicted that the dollar’s share in the global foreign exchange market could decline by around a fifth within three years, driven by rising U.S. government debt. Looking to the next decade, he suggested that China’s growing role in the global economy could erode the dollar’s dominance, reshaping how currencies are used in international finance.
The discussion continues to evolve as major economies weigh the benefits and risks of moving toward alternative payment and settlement arrangements. The debate centers on how quickly such changes could take hold and what they would mean for global trade, investment, and the stability of the world’s largest reserve currency, the dollar, which remains foundational to many domestic and international financial policies.