China–ASEAN Pact Reshapes BRICS Trade as Yuan Hits New Milestone

BRICS trade yuan activity has surged, with the currency now accounting for 8.5% of global forex trades as of September 2025. This momentum is reshaping Asian trade dynamics, with 90% of intra-BRICS transactions now settled in local currencies—a sharp rise from 65% two years ago. The shift underscores a broader MOVE away from dollar dominance in regional commerce.

China and ASEAN have further solidified economic ties through the upgraded ACFTA 3.0 agreement, signed at the 47th ASEAN Summit in Kuala Lumpur. The pact expands cooperation into digital and green economy sectors, marking a strategic pivot toward next-generation trade frameworks. Premier Li Qiang and Malaysian Prime Minister Anwar Ibrahim finalized the deal after nearly three years of negotiations.

The yuan's growing role in BRICS trade is expected to persist through 2026, with analysts anticipating deeper integration across Asian economic corridors. This trend coincides with ASEAN's push for digital infrastructure development, creating potential synergies for blockchain-based settlement systems.