Brics bloc slows down on de-dollarisation

Member countries of the Brics trading bloc seem to have backed down from their rather lofty ideal of establishing their own currency to counter the dominance of the US dollar and the euro, choosing to slow down the process by focusing on growing cross-border trade in national currencies – for now.

Commentators noted that current economic and geopolitical uncertainties may have contributed to the new cautious approach while US President Donald Trump’s trade war certainly led to it by pitting the US against everyone else.

Although the creation of a Brics currency featured prominently at the 2024 Brics Summit in Kazan, Russia, it has become clear that ambitions for an immediate launch have cooled.

Russian President Vladimir Putin, who once led the charge for de-dollarisation, appeared on stage at the summit holding what seemed to be a prototype Brics banknote, dubbed the Unit.

Now even Putin has softened his tone, stating that the bloc’s goal was not to break away from the US-dominated SWIFT (Society for Worldwide Interbank Financial Telecommunications) financial system entirely but rather to reduce the dollar’s “weaponisation” and promote the use of local currencies for trade between the Brics members.

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Since discussions around a new global reserve currency began in earnest during the 14th Brics Summit in 2022, progress has largely been rhetorical.

Putin then said the Brics countries were ready to issue a new reserve currency backed by a basket of Brics currencies. Brazil’s President Luiz Inácio Lula da Silva echoed this vision in 2023, but hopes of a major announcement at that year’s summit failed to materialise.

The latest summit, held in July 2025 in Rio de Janeiro, took a more measured tone.

While the idea of launching a Brics currency – potentially backed by gold – remains on the table, there is no timeline for its implementation. Brazil, which holds the rotating presidency of the group this year, confirmed that no significant decisions on a new currency are imminent.

Still, efforts to reduce reliance on the greenback continue.

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The final declaration of the summit runs to 31 pages and outlines extensive plans to deepen cooperation across a range of issues, from global institutional reform and AI development to climate change and logistics infrastructure.

The document reaffirms the bloc’s commitment to using national currencies in cross-border trade and promoting financial systems independent of the US dollar, including the further development of the Brics Pay platform and consolidation of the Brics New Development Bank (NDB).

The goal is clear: shift away from dollar dominance without destabilising global markets or member states’ economies.

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Trump

The return of Donald Trump to the White House on 20 January 2025 has added a new layer of complexity.

Markets reacted immediately. The dollar strengthened and currencies such as the Chinese yuan, Russian ruble, Brazilian real, Indian rupee and SA rand depreciated sharply in the days following Trump’s election and subsequant inauguration.

While these initial losses were later reversed, the shock underscored the power the US still holds in global finance – and why Brics nations may be hesitant about provoking unnecessary volatility by launching a competing currency.

Trump’s renewed “America First” rhetoric and ongoing trade disputes with China, Russia and other countries have reinforced the sense among Brics nations that economic resilience requires diversification.

But even with this motivation, the technical, political and logistical hurdles of launching a shared Brics currency remain huge.

The Atlantic Council, a grouping of US organisations that support the Atlantic Alliance, points out that the dollar continues to dominate the global financial system, as it is used in about 88% of currency trades and comprises 59% of all central bank reserves.

While the share of world trade conducted in dollars has gradually declined, the dollar remains entrenched as the world’s primary reserve and settlement currency.

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Patience

In a report by the International Institute for Middle East and Balkan Studies (IFIMES), Advisory Board member and retired Romanian army general Corneliu Pivariu, offered a frank analysis of the summit’s outcomes.

He characterised the July 2025 Brics meeting as “a turning point”, and said there is potential to accelerate the process of de-dollarisation and the consolidation of a multipolar economic order.

Yet he acknowledged that the movement remains cautious.

“The summit reflects the consolidation of Brics as an alternative, but cautious pole, without radical steps. The event marks a shift from ideological rhetoric to practical measures for building economic, financial, and technological autonomy,” said Pivariu.

He noted that the summit took place against a backdrop of stagnating Western economic growth, the prolonged Russia-Ukraine war, rising tensions in the Middle East, and accelerating industrial development across Asia.

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Other ‘more significant’ moves

While the Brics bloc reaffirmed its commitment to reforming global institutions such as the United Nations, International Monetary Fund, and the World Bank, Pivariu says the bloc’s more significant moves involve promoting independent payment systems, developing internal supply chains, and pursuing technological cooperation aimed at achieving medium-term autonomy.

“The 2025 Brics meeting will consolidate the trend of diversifying global economic and financial relations, offering member states and partners an alternative to dollar hegemony.

“Through energy and resource agreements, Brics will reduce its members’ exposure to sanctions imposed by the USA and EU,” he said.

He warned, however, that the West is taking notice.

“The US and the EU have expressed concerns regarding the accelerated de-dollarisation process, fearing the loss of global financial influence and the shift of trade flows towards Brics platforms,” Pivariu said in the report.

He added that Europe may need to adjust its energy and industrial strategies to mitigate the risk of being edged out of key markets, especially in the Southern Hemisphere.

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Idea to infrastructure

It is becoming clear that Brics members are moving away from sensational headlines and emotional announcements towards the less glamorous and more practical tasks of building infrastructure to promote systems for financial and physical trade.

Pivariu said the summit’s emphasis on cross-border systems, local currency settlement, and digital payment integration shows that the member countries understand their limitations, but are “willing to play the long game”.

“While a gold-backed Brics currency might grab attention, the immediate reality is that increasing the use of national currencies in trade, establishing sovereign payment rails, and strengthening institutions like the NDB offer far more practical benefits for now.

“The Brics strategy seems to be about laying the groundwork for autonomy rather than attempting to topple the dollar overnight,” Pivariu said.

“The summit confirmed that technological and industrial partnerships are becoming a strategic pillar of the bloc.

“In the medium term, Brics aims to create an integrated internal market and transform itself into a major global industrial-technological actor.”

This ambition, if realised, would represent the most meaningful step yet toward a multi-polar world, with or without a shared Brics banknote.

This article was republished from Moneyweb. Read the original here.