BRICS sold US debt worth around $28.8 billion as China, India and Brazil reduced their treasuries holdings in October, according to data from the U.S. Treasury Department. The selloff actually coincides with JPMorgan’s bearish forecast for the dollar in 2026 and also reflects growing concerns about de-dollarization trends right now.
Also Read: Why the BRICS De-Dollarization Plan Is Still Incomplete
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 “quietly leaving” 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:
Our dollar view for 2026 is net bearish, albeit smaller in magnitude and less uniform in breadth than in 2025.
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.
Also Read: BRICS 2025 Summary: De-Dollarization Push and Gold Reserves Surge
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.
