The BRICS+ coalition is finalizing their plans for a financial system independent of the U.S. dollar. These plans will become clear during their scheduled summit this July in Rio de Janeiro, which people have nicknamed the “Rio Reset. ”This move represents what may be the most significant challenge to U.S. financial dominance since the 1944 Bretton Woods Agreement established the dollar as the world’s reserve currency.
The Rio Reset marks the culmination of a decade-long effort by BRICS nations (Brazil, Russia, India, China, South Africa). These nations, now joined by Iran, Indonesia, the United Arab Emirates, and others, aim to create a parallel global financial system. This system would be completely independent from the U.S. dollar. Today, this coalition represents approximately half the world’s population and half of global industrial capacity. Furthermore, it controls the majority of global resources. With the Rio Reset, these nations will finalize the infrastructure for a “dollarless financial system.” Such a system could fundamentally alter the global economic landscape. It could also threaten the U.S. dollar’s status as the world’s reserve currency.
Why the Rio Reset Matters to Americans
The BRICS nations have been constructing this alternative financial system for two primary reasons: (1) the continued devaluation of the U.S. dollar and (2) its weaponization through sanctions. Their bloc’s work has accelerated in recent years, leading to the development of an array of institutions, clearing and settlement systems, compliance and regulatory agencies, and more:
- BRICS Pay: An alternative to SWIFT for international payments.
- Cross-Border Interbank Payment System (CIPS): Enabling direct transactions without using dollars.
- mBridge: A gold-based digital exchange for settling international trade.
- New Development Bank: Their alternative to the World Bank and IMF.
- Central bank gold reserves: BRICS nations have dramatically increased their gold holdings.
