December 11, 2025
At the 2025 BRICS Summit, Russia revealed a prototype of a new reserve currency. Dubbed “the Unit,” it could be backed by gold and local currencies. President Putin clarified the goal isn’t to reject the dollar, but to avoid its “weaponization.” Still, this move could weaken dollar dominance in global trade. If launched, this BRICS currency would mark a major geopolitical and financial shift.
On December 1st, US banks drew $25 billion from the Fed’s Standing Repo Facility—the second-largest amount ever. The move signals liquidity stress. Spiking repo rates and shrinking reserves are making overnight cash harder to find. It’s a reminder that not all is calm beneath the surface of the banking system.
This week’s Fed meeting is shaping up to be a battle of opposing views. With no October jobs or inflation data, officials must decide on a rate cut using outdated numbers. Some want cuts to support jobs, others fear more inflation. Markets expect a quarter-point cut—possibly the last one of 2025.
Despite strong markets, JPMorgan strategist Karen Ward warns that inflation could be the big spoiler next year. Governments are spending heavily. Central banks are easing. If inflation rises again, neither stocks nor bonds may offer protection. She suggests investors look to private assets and infrastructure as a hedge.
Brazil, India, and China sold off $29 billion in US Treasury holdings in September. Standard Chartered says de-dollarization is “real”—even if it’s slow. More countries are looking to reduce reliance on the dollar. While the greenback remains dominant, these moves show the tide may be turning.
