May 8, 2025 :- In a bold move set to reshape global trade dynamics, the BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—has announced a significant step toward reducing its dependence on the US dollar in international trade settlements.
At a high-level summit held in Moscow this week, BRICS member nations agreed to expand the use of their own national currencies and the recently introduced BRICS Pay system in bilateral and multilateral trade. The initiative aims to provide an alternative to the dollar-dominated financial system, which the bloc has increasingly criticized as a tool of Western geopolitical leverage.
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BRICS Pay System Gains Momentum
The BRICS Pay system, a digital platform launched in 2024 to facilitate cross-border payments in local currencies, has now been integrated with the central banking systems of all five nations. It allows real-time currency conversion and settlements without routing through traditional SWIFT-based networks, effectively bypassing dollar clearinghouses.
“This is not an attack on any specific currency,” said Russian Finance Minister Anton Siluanov. “It’s about financial sovereignty and building a more equitable global monetary order.”
China and India, two of the world’s largest economies, have already begun trading key commodities, including oil and agricultural goods, using their own currencies. Brazil and South Africa are expected to follow suit by mid-2025.
Strategic and Political Motivations
The move comes in response to what BRICS nations see as the weaponization of the dollar through sanctions and financial exclusion. Russia, still under heavy Western sanctions due to its actions in Ukraine, has been the loudest advocate for de-dollarization. Meanwhile, China has expressed growing concern about the risk of financial decoupling from the West.
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“The current system unfairly benefits a few at the expense of the many,” said Brazilian President Luiz Inácio Lula da Silva. “By relying more on our own currencies, we can strengthen our economies and shield ourselves from external shocks.”
Ripple Effects in the Global Economy
While BRICS accounts for around 32% of global GDP and over 40% of the world’s population, the US dollar still dominates over 80% of global trade settlements. However, analysts believe that sustained efforts by large economies to diversify away from the dollar could gradually reduce its dominance.
“This could be a turning point,” said Anika Rao, a senior economist at the Institute for Global Finance. “If more countries see benefits in bilateral trade without the dollar, we may witness a more multipolar financial system within the next decade.”
Western leaders have expressed concern over the trend. US Treasury Secretary Janet Yellen acknowledged the development, stating, “The strength of the dollar lies in trust, rule of law, and market depth. But we cannot ignore efforts by other countries to build parallel systems.”
Looking Ahead
With several emerging economies expressing interest in joining BRICS, including Saudi Arabia, Iran, and Indonesia, the momentum for a new financial architecture is growing. The next BRICS summit, scheduled for October 2025 in New Delhi, is expected to focus on expanding membership and formalizing a shared digital currency framework.
As BRICS continues to chart a course toward financial independence from the West, the global monetary landscape may soon look very different from the one shaped by post-World War II institutions.
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