BRICS Dream Shattered: Why They’re Failing to Dethrone the US Dollar

BRICS nations hit a wall in their dollar-dethroning quest—turns out building a reserve currency requires more than just ambition.

The Coordination Conundrum

Five economies, five agendas. Brazil wants agricultural exports priced in local currency while Russia pushes petroyuan settlements. South Africa's rand lacks liquidity, India's rupee faces convertibility issues, and China—well, nobody trusts Beijing's financial transparency. They're trying to orchestra a symphony while playing different scores.

The Dollar's Deep Moats

SWIFT isn't just a payment network—it's a seventy-year-old ecosystem with legal frameworks, dispute resolution mechanisms, and institutional trust. BRICS' alternative settlement system processes less than 5% of its members' cross-border trade. You don't replace the dollar with a spreadsheet and hopeful press releases.

The Crypto Wild Card

Here's the twist: while BRICS bureaucrats debate currency baskets, Bitcoin's slicing through the dollar hegemony without permission. No central bank meetings required—just mathematics and network effects. The real currency revolution might bypass nation-states entirely.

So BRICS keeps holding summits and issuing statements while the dollar strengthens during their own meetings—the ultimate financial irony. Sometimes the best way to challenge the king isn't to storm the castle, but to build a better kingdom next door.

Top 3 Reasons Why the BRICS Alliance Is Unable To Replace the US Dollar on the Global Stage

The US has the world’s largest economy, and no country can survive without its support. It boasts of a strong capital market, with stocks, Treasuries, bonds, and other assets taking the top spot. The US dollar is still the most reliable ‘safe haven’, and BRICS is unable to break the stronghold. Their local currencies are barely used on the global stage and stand no chance of challenging the USD.

BRICS has no unified currency to replace the US dollar. While China wants the Chinese yuan to be the de facto currency, India struck that dream down. Also, India wants the rupee to be accepted for trade, but Russia rejected it for oil deals. So there’s infighting between member nations as to which currency should make it to the top. Internal rivalries are stopping the bloc from attaining its full potential.

Approximately 88% of all global transactions are still settled in the USD. All global commodities, including oil, are dominated by the US dollar despite BRICS commanding more than 44% of the production. Though the Chinese yuan was opted for settlements, only Russia, Iran, and Belarus pay through it. They use the Chinese yuan because of sanctions placed on their economies by the WHITE House.