Dollar still will dominate over yuan and BRICS currency

De-dollarization is the process by which a nation tries to reduce its reliance on the dollar, whether it be through diversifying its reserves away from the dollar by utilizing gold, the Chinese yuan, or bitcoin, or by using a different currency to settle international trade. It doesn't necessarily follow that the dollar's influence has waned or that its importance to that nation's economy has decreased. (Especially since the melody to which almost every other nation dances is set by the U.S. Federal Reserve's decisions on interest rates.)

Daniel McDowell, a political science professor at Syracuse University, defined de-dollarization as a government's capacity to lessen its reliance on the dollar. "I believe that the most important thing in this situation is to try to differentiate or separate the idea of de dollarization from the end of dollar supremacy. I don't believe those two things must be related.

According to the chief economist of credit rating firm S&P Global, the dollar's hold as the predominant global currency is eroding.

A flurry of nations have begun to trade in currencies other than the dollar and return gold holdings as a result to aggressive U.S. sanctions, such as the freezing of Russia's reserves worth hundreds of billions of dollars last year.

The dollar "doesn't possess quite the force that it used to," S&P's chief economist Paul Gruenwald said at a conference the ratings company hosted in Britain.

We have other things going on beyond  the dollar world," said Gruenwald, citing several instances of nations that are currently avoiding the dollar.

He mentioned the increase in trade conducted in the Chinese yuan as well as the affordable financing provided by development banks with headquarters in China, like the New Development Bank and the Asia Infrastructure Investment Bank, formerly known as the BRICs bank.