As BRICS expands and intensifies efforts to reduce reliance on the U.S. dollar, a multipolar monetary world is emerging. With initiatives like BRICS Pay and growing local currency trade, the bloc aims to shift the global financial landscape.

The U.S. dollar has long reigned as the world’s dominant reserve currency, but a shift is unfolding as the BRICS bloc — Brazil, Russia, India, China, and South Africa — accelerates its push for de-dollarization. With its expansion to include Indonesia in 2025 and a growing list of partner nations, BRICS+ now represents over 40% of the world’s population and economic output by PPP. This growing clout underpins a call for a more balanced global financial system.

The Drivers of De-Dollarization
Several key motivations are propelling BRICS nations to reduce dependence on the dollar:

  • Weaponization of the Dollar: Sanctions and financial tools linked to U.S. monetary policy have incentivized countries to seek autonomy from dollar-based systems.
  • Monetary Sovereignty: Reducing exposure to Fed policy shields BRICS economies from inflation-exporting interest rate moves.
  • Multipolar Ambitions: The bloc envisions a more equitable financial structure that reflects emerging economies' growing influence.
  • Cost Reduction: Local-currency trade and settlement eliminate exchange rate risk and transaction costs tied to dollar use.

 

De-Dollarization in Action
BRICS members are deploying several strategies to challenge dollar dominance:

  • Bilateral Local Currency Trade: India and UAE have already settled oil trades in rupees and dirhams, bypassing the dollar.
  • BRICS Pay Initiative: A proposed decentralized digital settlement platform aims to replace SWIFT for member transactions using national currencies or digital money.
  • New Development Bank (NDB): Provides infrastructure loans in local currencies as an alternative to IMF/World Bank financing.
  • Reserve Diversification: BRICS central banks have added over 1,000 metric tons of gold in 2024 as a hedge against dollar exposure.

 

A Gradual Shift, Not a Sudden Overthrow
While BRICS initiatives mark a major turning point, the dollar’s global dethronement remains unlikely in the near term. De-dollarization will unfold gradually, carving out a parallel, more pluralistic financial landscape. The dollar’s share in global reserves has already dipped from 65% in 2014 to 58% by late 2024.

The rise of BRICS+ and its suite of financial strategies underscore a broader shift toward a multipolar economic order. The dollar may remain central, but the age of unquestioned dominance is fading — ushering in a more diverse and potentially balanced global monetary ecosystem.