BRICS has stopped short of backing a common currency or replacing the US dollar, opting instead for greater use of national currencies and alternative payment systems.
Russia and Iran pushed a stronger de-dollarisation agenda, while the bloc’s formal statement adopted a more cautious approach focused on interoperable payments and local-currency settlements.
India backed stronger cross-border payment links and local-currency trade, underscoring BRICS’ gradual strategy of reducing dollar dependence rather than replacing the US currency outright.
BRICS De-Dollarisation: Bloc Stops Short Of Common Currency, Pushes Local-Currency Trade
A joint statement by BRICS finance ministers and central bank governors instead focused on incremental measures such as interoperable payment systems, local-currency settlements and voluntary cooperation, reflecting the bloc’s cautious approach to reducing dependence on the dollar
Summary
BRICS has stopped short of endorsing a common currency or calling for the replacement of the US dollar, even as some of its most prominent members push for greater use of national currencies in trade and alternative payment systems.
A joint statement by BRICS finance ministers and central bank governors instead focused on incremental measures such as interoperable payment systems, local-currency settlements and voluntary cooperation, reflecting the bloc’s cautious approach to reducing dependence on the dollar.
The statement said the BRICS Payment Task Force should continue exploring “pragmatic solutions” for cross-border payments that are faster, cheaper, more accessible, efficient, transparent and secure.
Putin, Pezeshkian Push De-Dollarisation Agenda
The cautious language contrasts with stronger calls from Iranian President Masoud Pezeshkian and Russian President Vladimir Putin at the BRICS Business Forum in New Delhi on Friday.
Pezeshkian called for greater use of national currencies in trade and the development of mechanisms to manage currency risks and facilitate reciprocal settlements.
He argued that the concentration of the international financial system around a limited number of currencies makes economies vulnerable to political shocks. He also backed a larger role for the New Development Bank (NDB) in facilitating transactions among BRICS members without relying on the dollar.
For Iran, which faces extensive US sanctions, alternative payment mechanisms and greater use of national currencies could reduce exposure to dollar-based financial restrictions.
Putin similarly accused Western countries of using sanctions and other measures to restrict international trade and called for BRICS to build a “new, sustainable platform for global growth”. Russia has faced sweeping Western sanctions that have restricted its access to parts of the dollar- and euro-based financial system.
Why BRICS Is Not Replacing The Dollar Yet
The formal BRICS agenda centres on strengthening existing financial infrastructure rather than creating a rival currency. The joint statement backed cross-border interoperability of payment and messaging systems and greater use of local currencies while stressing that there is “no one-size-fits-all approach”.
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It also called on the NDB to expand local-currency financing, diversify funding sources and support development projects. The bloc backed its Multilateral Guarantees initiative to improve project creditworthiness, reduce financing costs and attract private capital.
De-dollarisation within BRICS could therefore involve more bilateral trade in national currencies, linked payment systems, fewer intermediaries, greater local-currency lending and financial
(With Inputs From PTI)
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