BRICS De-Dollarization Push: A Challenge to the US Dollar’s Dominance
The BRICS alliance is mounting a historic challenge to the US dollar's supremacy in global trade and finance. For the first time since the Bretton Woods era, a coalition of major economies—now expanded to 10 members—is pursuing de-dollarization through cooperation rather than confrontation. The bloc has already implemented local currency trade settlements, rewritten bilateral trade agreements, and launched alternative payment systems like China's CIPS and India's UPI.
Gold accumulation by BRICS central banks signals a strategic shift toward asset diversification. While talk of a common BRICS currency circulates, the alliance faces inherent limitations. Parallel financial systems are easier to establish than to sustain without compromising economic growth. The New Development Bank's local currency bonds and loans mark incremental progress, but the dollar's entrenched position remains formidable.
