As the BRICS bloc continues its mission in de-dollarization, the latest developments for the current state of the US Dollar signal that the mission is working. According to Forbes, the US Dollar ranks last in the top 10 strongest currencies in the world.
The Kuwaiti Dinar is currently the strongest currency in the world, according to the list. 1 Kuwaiti Dinar currently buys 3.25 US dollars. The country’s oil reserve and fiscal policies are attributed to the currency’s strength.
Other global currencies above the US Dollar according to Forbes are the Omani Rial, the Jordanian Dinar, the Euro, and the British pound. It is notable that none of the BRICS native currencies feature in the top ten. While this isn’t the best news for BRICS, the US Dollar’s dropping in strength makes up for it.
Despite coming 10th, the U.S. dollar is still the de facto global currency for trade and commerce. It is used by dozens of nations worldwide. Reserve Banks around the world have the U.S. dollar in treasuries and cannot transact or initiate business without the greenback. Therefore, the U.S. dollar remains the superior currency globally despite its ranking. However, unrest for the US Dollar is growing, as one can tell by the Forbes list.
The BRICS Currency is still under development. It will be interesting to see how that new currency would fare on a list like Forbes’. It likely wouldn’t surpass the US Dollar right away, but many expect BRICS and its currency to threaten the US dollar.