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.