Why de-dollarization discussions are more talk, less action

Sheldon Cooper | Lightrocket | Getty ImagesWhen BRICS leaders met over the weekend, they talked about the economic power of the Global South and the need to expand trade in local currencies, signaling a push to cut dependence on the greenback.The bloc aims to reduce its reliance on the greenback due to geopolitical tensions, economic sanctions, and the U.S. tariff policy, experts said. However, they raised doubts about the ability of the BRICS to wean away from the dollar.For years, the term "de-dollarization" has come up from time to time, especially when confidence in the U.S. is shaken. The idea is simple: Countries mostly transact in the U.S. dollar today, thereby underpinning most of the world's financial systems. For example, two of the world's most traded commodities, oil and gold, are denominated in the greenback. Data from the Bank of International Settlements reveals that the U.S. dollar made up 89% of the forex market — up 1 percentage point from a year earlier — while the euro and the yen made up 29% and 17%, respectively, as of April.South African President Cyril Ramaphosa said in his address at the BRICS Summit that BRICS should "press ahead with greater use of local ...