BRICS Dumps $28.8B in US Treasuries as JPMorgan Flips Bearish on Dollar

The world's biggest emerging economies just sent a $28.8 billion warning shot across the dollar's bow. JPMorgan, the quintessential Wall Street titan, is now sounding the alarm on the very currency it's built upon.

The Great Unwinding

Forget subtle portfolio adjustments—this is a strategic retreat. The BRICS bloc isn't just trimming exposure; they're executing a coordinated offload of US debt. The move screams a loss of confidence in the traditional safe haven, a bet that the dollar's multi-decade dominance has entered its final chapter. It's the financial equivalent of watching the crew start to abandon ship.

Wall Street's Unexpected Bear

The real story isn't the sell-off itself, but who's nodding along. JPMorgan turning bearish on the dollar is like a shark developing a sudden fear of water. It signals a seismic shift in the institutional mindset. When the guardians of the old system start questioning its foundations, you know the tremors are real. It’s the ultimate case of 'if you can't beat 'em, join 'em'—or in this case, 'if you can't save 'em, short 'em.'

A System Under Stress

This isn't about a single currency having a bad quarter. It's about the cracks in the entire post-Bretton Woods financial architecture. Excessive debt, weaponized finance, and the relentless search for yield have pushed the system to a breaking point. The BRICS move and JPMorgan's pivot are merely the most visible symptoms. The old playbook is being ripped up in real-time.

So, where does all that fleeing capital go? It doesn't just vanish. It hunts for a new home—something decentralized, borderless, and immune to the whims of any single nation's balance sheet. Funny how the solution to a trust crisis looks a lot like a trustless protocol. The dollar had a good run, but even the mightiest empires eventually become just another line on a historical chart.

BRICS De-Dollarization and US Treasuries Selloff Signal Dollar Risk

India led the US treasuries selloff by cutting $12 billion from its holdings in October. China reduced its exposure by $11.8 billion, while Brazil scaled down by around $5 billion. What’s interesting is the Treasury International Capital System data shows that BRICS sell US debt at an accelerated pace over the past year. Between October 2024 and October 2025, China has offloaded $71.4 billion (a significant reduction, clearly). Brazil dumped $61.1 billion, and India reduced its holdings by $50.7 billion over the same period.

Banking giant ING actually warned that BRICS nations are “” the U.S. Treasury market. The reality is, the China India Brazil US debt reduction reflects broader BRICS de-dollarization efforts happening right now. And the selloff was happening at the same time as JPMorgan’s currency outlook for 2026—which, notably, points to continued weakness for the greenback.

Meera Chandan, co-head of Global FX Strategy at JPMorgan, was clear about the fact that:

Federal Reserve Rate Cuts Drive Currency Weakness

The Fed’s easing stance is different from the European Central Bank staying on hold and the Bank of Japan potentially hiking rates, which narrows interest rate differentials and should support currencies like the euro and yen against the dollar.

JPMorgan forecasts EUR/USD at 1.20, GBP/USD at 1.36, and even USD/JPY at 164 by the end of 2026. The dollar’s depreciation could be constrained by solid US growth and persistent inflation that might prompt the Fed to maintain restrictive policies longer than what markets are anticipating right now.

Structural Shifts in Global Reserve Management

The US treasuries selloff by BRICS nations represents some structural changes in global finance. As these economies pursue greater monetary independence, the China India Brazil US debt reduction is accelerating pressure on the greenback, particularly if the JPMorgan dollar forecast proves accurate and BRICS sell US debt continues through 2026 and beyond.

The BRICS de-dollarization trend has been building for some time, with member nations diversifying their reserves away from dollar-denominated assets. Along with the ongoing US treasuries selloff, central banks are also increasing their Gold holdings as an alternative to traditional dollar reserves.

ING analysts believe India’s Treasury sales are related to efforts to support the rupee, along with some geopolitical factors. The private sector has been picking up much of the slack as BRICS sell US debt, which has helped absorb the impact on markets so far.