- US Dollar Irreplaceable: Singapore’s Central Bank chief says no BRICS currency can match the dollar’s dominance.
- Treasury Market Strength: The $28T U.S. Treasury market is vital and unmatched globally.
- Asian Funds Prefer USD: Asian investors still heavily favor unhedged U.S. dollar assets.
As the BRICS alliance continues its campaign to dethrone the US dollar in global trade, Singapore’s Central Bank head, Chia Der Juin, has voiced strong skepticism about the feasibility of such a shift. Despite growing support for de-dollarization among emerging economies, Chia firmly believes that the greenback remains irreplaceable in the global financial system.
BRICS, which includes Brazil, Russia, India, China, and South Africa — with recent additions like Egypt and the UAE — has been advocating for the use of local currencies to conduct international trade. The bloc’s broader goal is to reduce dependence on the US dollar and elevate the influence of national currencies to drive domestic GDP growth. This movement has gained traction amid geopolitical tensions and global economic rebalancing.
However, during a recent statement, Chia highlighted the entrenched role of the dollar in global finance. “The $28-trillion Treasury market is fundamental and systemic to the global financial system,” he emphasized, noting that no alternative currency — including those promoted by BRICS — comes close to matching the scale or stability of dollar-based assets.
Chia also pointed out that institutional investors across Asia maintain a significant overweight exposure to US assets. “Most of it is unhedged,” he explained, warning that any abrupt changes in sentiment could trigger volatile market responses. This suggests that, despite the rhetoric, investor behavior still overwhelmingly favors the dollar.
His comments underscore the challenges BRICS faces in its quest for de-dollarization. While the bloc may succeed in promoting bilateral trade using local currencies, dethroning the US dollar as the global reserve currency appears far less attainable.
Also Read: Saudi Arabia Drops BRICS, Inks Massive $600 Billion Agreement With US
In conclusion, Chia’s perspective reinforces the idea that the US dollar remains the backbone of the global financial system. BRICS’ ambitions may reshape some aspects of international trade, but when it comes to reliability and scale, the greenback remains unrivaled — at least for now.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
