Explore how the BRICS bloc’s expansion and de-dollarization drive are reshaping the global monetary system, challenging U.S. dollar dominance and promoting a more multipolar economic order.

The U.S. dollar has long enjoyed unrivaled dominance as the global reserve currency. However, the growing influence of BRICS—Brazil, Russia, India, China, and South Africa—signals a shift toward a multipolar financial world. The bloc’s recent expansion and strategic push for de-dollarization mark a pivotal moment in the evolution of global finance.

BRICS Expands: A Rising Economic Titan
Founded in 2006 to amplify emerging economies' global voices, BRICS now includes new entrants like Indonesia (joining in 2025) and partner countries such as Belarus, Cuba, and Malaysia. This expanded BRICS+ represents over 40% of the world’s population and economy (PPP), eclipsing the G7's global GDP share of 28% in 2024.

Why De-Dollarization Now?

  • Sanctions and Financial Weaponization: The use of the dollar and SWIFT as geopolitical tools—especially sanctions on Russia—has exposed vulnerabilities and motivated alternatives.
  • Fiscal Sovereignty: BRICS nations aim to insulate themselves from U.S. monetary policy shocks that can cause currency devaluations and capital flight.
  • Multipolar Vision: These countries advocate for a diversified financial system that reflects the Global South’s growing influence.
  • Practical Trade Incentives: Conducting trade in local currencies can cut transaction costs and eliminate exchange rate risks.

Key Strategies in De-Dollarization

  • Bilateral Currency Trade: India and UAE have begun rupee-dirham oil trade, sidestepping the dollar.
  • Alternative Payment Systems: Projects like BRICS Pay aim to create decentralized cross-border platforms outside Western control, enhancing security and reducing costs.
  • Financial Sovereignty Tools: The BRICS-backed New Development Bank offers local currency loans, countering reliance on the IMF or World Bank.
  • Gold Accumulation: In 2024, central banks added 1,045 metric tons of gold to reserves, signaling diversification away from dollar-based assets.

Evolution, Not Overthrow
While the dollar’s supremacy remains intact, its grip is loosening. Its share of global reserves dropped from 65% in 2014 to 58% by late 2024. The creation of a common BRICS currency remains theoretical, but the shift toward using local currencies, new financial institutions, and regional alliances is actively reshaping the monetary order.

Rather than a revolution, de-dollarization under BRICS is a deliberate evolution—one that points toward a future where the dollar is influential, but no longer invincible. The rise of a multipolar financial system is underway, and BRICS is at its core.