European Firms See Rising Demand for Local Currency Transactions Amid BRICS Influence

European financial institutions are witnessing a surge in requests to conduct transactions in local currencies rather than the US dollar, mirroring the BRICS alliance’s de-dollarization strategy. Banks, brokers, and financial entities across Europe report growing demand for deals settled in Chinese yuan, Hong Kong dollar, Emirati dirham, and the euro—bypassing traditional dollar-based hedges.

The shift marks a first for European markets, where institutional clients now explicitly seek non-dollar settlements. A Japanese firm transferring funds to a Philippine entity through European intermediaries, for instance, WOULD typically use dollars—but such conventions are being challenged. Luxembourg Times notes this trend aligns with BRICS’ 2025 push to elevate local currencies in global trade.