The Stealth Erosion of the US Dollar’s Global Dominance

There is undeniable excitement about challenges to the American dollar’s position as the global reserve currency. While economists have warned for years that the dollar’s dominance shouldn’t be a foregone conclusion, few have paid close attention to the warnings, especially in the halls of American power. After Russia invaded Ukraine and US sanctions failed to deliver a decisive blow against the Russian economy, new questions emerged about how the global economy grew beyond America’s grip.

These discussions have reached a fever pitch in debates about the creation of a BRICS currency. The BRICS — a grouping of the economies of Brazil, Russia, India, China, and South Africa — represents an alternative to Western-controlled international organizations such as the World Bank and International Monetary Fund. Together, these economies represent an incredible swath of the global economy, and their influence extends to areas beyond the American purview in the Global South. Creating a shared currency in these economies would upend international trade and represent a clear challenge to the dollar as the world’s reserve currency.

But this article isn’t about a BRICS currency because we are far from its creation. Instead, we must recognize that discussion about a BRICS currency overshadows more significant developments quietly chipping…