China’s Top Economist Exposes BRICS De-Dollarization Blueprint - Here’s What It Means for Global Finance

Forget subtle hints—China just laid the de-dollarization roadmap on the table. A top economist from the world's second-largest economy has pulled back the curtain on BRICS' coordinated strategy to reduce global reliance on the U.S. dollar. This isn't speculation; it's a declared playbook.

The Mechanics of Monetary Shift

Think bilateral trade settlements in local currencies, expanded currency swap lines, and a push for commodity pricing outside the greenback. The plan systematically targets the dollar's pillars: its role as the primary trade invoicing currency, dominant reserve asset, and default financial messaging medium. It's a multi-front assault on financial infrastructure, not just rhetoric.

Why Crypto Watchers Are Leaning In

Every move away from traditional correspondent banking is a potential on-ramp for blockchain-based alternatives. Central Bank Digital Currencies (CBDCs) from BRICS nations could form a new digital payments network, bypassing SWIFT. For decentralized assets, it signals a world where capital seeks neutral, borderless rails—exactly what crypto was built for. Volatility might be the industry's brand, but instability in the legacy system is its fuel.

A Fragmented Financial Future

The endgame isn't one currency replacing another. It's fragmentation: multiple currency blocs and parallel systems. That means more complexity, more arbitrage opportunities, and more demand for assets untethered to any single nation's politics or monetary policy. It's the ultimate stress test for the 'safe haven' narrative—and let's be honest, watching traditional finance scramble for a plan B is almost as satisfying as a green candle on a bearish Tuesday.

BRICS De-Dollarization Insights And Yuan Internationalization Trends

Beijing’s Internal Power Struggle Over De-Dollarization

Chinese bureaucrats remain divided on BRICS de-dollarization even though Xi has catalyzed confidence in Yuan internationalization efforts. Economist Jian Lian explained that PBOC officials along with major state banks actually fear US sanctions, and they’re hesitating on aggressive currency transitions through various major channels. This more conservative approach conflicts with the presidential vision for RMB expansion that’s been pioneered forward.

Russian President Vladimir Putin stated at the 2024 Kazan summit:

China’s November 2024 China dollar bond strategy placed $2 billion in Riyadh. It was subscribed 20 times over at just 1-3 basis points above US Treasuries through multiple essential market mechanisms. This occurred right at the petro-dollar system’s heart before Trump’s inauguration, which was seen as strategically significant timing across several key geopolitical contexts.

Yuan Backs Real Production Instead Of Speculation

Yuan internationalization serves industrial trade rather than speculation, actually transforming various major commodity markets. The currency enables purchases of manufactured goods, commodities from Russia and Brazil, and also increasingly Middle Eastern oil. As of March 2024, Chinese payments were cleared 52.9% in RMB versus 42.8% in dollars according to recent data that was released.

Putin emphasized at Kazan:

Kenya converted railway debt from dollars to Yuan. They secured rates below 2% compared to dollar rates that were exceeding 10% through certain critical negotiations. This Global South currency shift demonstrates practical BRICS de-dollarization through bilateral agreements that are being implemented across several key African economies.

Dollar Holdings Are Being Declined Steadily

China reduced Treasury holdings to around $700 billion while maintaining over $3 trillion in total dollar reserves. The first quarter of 2024 saw $53.3 billion dumped in Treasuries and agency bonds according to US Treasury data. Gold reserves increased to 2,264.87 tons, up from 2,235.39 tons previously, which shows a pattern that has accelerated.

Iranian President Masoud Pezeshkian stated:

Putin later clarified:

Brazilian President Lula da Silva countered:

Infrastructure Financing Replaces Traditional Speculation

The China dollar bond strategy supports infrastructure financing through Yuan-denominated loans at rates that are under 2% across numerous significant development projects. Chinese banks purchase bonds from African nations, and this creates money that finances engineering services through several key mechanisms. This mechanism advances the Global South currency shift even without requiring BRICS reserve currency consensus. However, BRICS already managed to launch a gold-backed UNIT payment system.

Putin noted:

Russia’s BRICS trade reached 90% in local currencies during 2024, which is substantial across multiple essential sectors. Yuan internationalization is progressing through practical trade settlements and also infrastructure projects rather than unified currency schemes that are blocked by consensus requirements through certain critical institutional barriers. BRICS de-dollarization continues advancing through these mechanisms even as formal BRICS reserve currency proposals face internal resistance and technical challenges that need to be resolved across various major policy frameworks.