BRICS Drops Dollar Push, Pivots Hard to Local Currency Trade in 2025

De-dollarization hits a wall—BRICS nations just reversed course on dumping the greenback.

Local Currencies Take Center Stage

The bloc's new strategy ditches anti-dollar rhetoric and doubles down on settling trade in members' own currencies. No more waiting for some mythical BRICS currency to challenge dollar dominance.

Realpolitik meets real economics—turns out it's easier to complain about dollar hegemony than actually build an alternative. Another geopolitical fantasy meets spreadsheet reality.

BRICS De-Dollarization Reversal Highlights Local Currency Trade Growth

Putin’s Changed Stance on BRICS Currency

Russian President Vladimir Putin, who was previously the biggest advocate for the BRICS de-dollarization agenda, has actually softened his position quite significantly. At the 2024 Kazan summit, Putin was seen holding what appeared to be a prototype BRICS banknote called the “Unit,” but his recent statements show a clear shift in thinking.

Putin was clear about the fact that:

Brazil Confirms No Immediate Currency Plans

Brazil, which holds the rotating BRICS presidency, has confirmed that the BRICS de-dollarization reversal means there’s no 2025 timeline for launching the unified currency. The July 2025 Rio de Janeiro summit’s 31-page declaration outlines extensive cooperation plans but actually lacks concrete currency implementation dates.

This measured approach reflects some concerns about market volatility, especially after Trump’s return to the WHITE House caused immediate currency depreciation across BRICS nations including the Chinese yuan, Russian ruble, Brazilian real, Indian rupee, and even South African rand.

India’s Clear Position Against De-Dollarization

India has taken what appears to be the strongest stance regarding the BRICS de-dollarization reversal. MEA spokesperson Randhir Jaiswal made India’s position quite clear during a weekly media briefing.

Jaiswal stated:

His comments came after Brazilian President Luiz Inácio Lula da Silva suggested BRICS nations could explore a trade currency amid rising tensions with the United States.

Jaiswal also added:

Focus Shifts to Practical Solutions

This trend of the reversal of de-dollarization in BRICS has brought focus toward fostering BRICS local mechanisms. India has entered into agreements with countries like Russia, the UAE and even the Maldives to settle the BRICS in local currencies and thus help avoid the currency conversion risks. External affairs minister S Jaishankar explained that India is counting on its strategy of what he terms ‘derisking’ trade, via partner diversification and alternative payment systems as opposed to dollar independence per se.

The existing strategy focuses on launching the BRICS Pay platform and on developing the BRICS New Development Bank and on preserving financial stability of the organization. BRICS local currency trade by member countries has known that the gradualism of the regime is a more available route to sustainable change than the radicalism of taking leave of the established financial deployments.

BRICS countries are currently focusing on bilateral trade arrangements using their national currencies and not entirely forming new fresh international currencies, which demonstrates a realistic recognition that developing alternative financial frameworks needs prudent coordination in order to prevent destabilising the international financial markets.