BRICS-Led Eurasian Bloc Moves to Dethrone US Dollar with New Development Bank

China has spearheaded a pivotal financial shift during the SCO Summit 2025, uniting 10 Eurasian nations in a plan to establish a US dollar-alternative banking system. The proposed New Development Bank WOULD facilitate loans in local currencies, directly challenging Western financial hegemony.

The alliance—comprising BRICS members and SCO participants like India, Russia, and Pakistan—aims to launch a parallel payment infrastructure. "This isn't just about currencies, but rewriting the rules of economic engagement," observed a geopolitical risk analyst familiar with the negotiations.

Structural weaknesses threaten the coalition's ambitions. Member states like Pakistan and Iran lack the economic mass to individually counter dollar dominance, while historical tensions between India-China and India-Pakistan factions introduce operational fragility. The initiative's success hinges on unprecedented cooperation among historically adversarial nations.