desdolarizacion

📣Brazil is diversifying its international reserves, reducing dependence on the US dollar 💸. In the last seven years, the country has reduced its dollar reserves by 12%, while the share of gold has increased by 400% 📈. Currently, the dollar represents 78% of Brazil's international reserves, down from 89% in 2018 📊.

*Composition of Brazil's International Reserves:*

- *US Dollar:* 78% 💸
- *Gold:* 3.5% (increase of 400% since 2018) 💎
- *Chinese Yuan:* 5.3% (surpassing the euro) 🇨🇳
- *Euro:* 5.2% 🇪🇺

This change is part of a global de-dollarization movement, driven by the deterioration of the US fiscal fundamentals and increasing geopolitical fragmentation 🌎. The Chinese yuan has already surpassed the euro as the second most relevant currency in the reserves of the Brazilian Central Bank 📈.

*Reasons behind de-dollarization:*

- *Deterioration of US fiscal fundamentals:* estimated public debt at 120% of GDP 📊
- *Militarization of the dollar:* imposition of sanctions and freezing of assets of sovereign nations 🚫
- *Search for diversification:* reduction of exposure to assets that can be unilaterally blocked 📈

This trend is not exclusive to Brazil, as globally the dominance of the dollar in central bank reserves has fallen from 60% in 2015 to 46% currently 🌎.
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