Recent data point to a growing pattern in BRICS trade where settlements conducted in member economies’ own currencies have begun to outpace those settled in the U.S. dollar. The shift reflects a broader effort within the bloc to diversify payment methods and strengthen monetary autonomy across the member economies. The observation emerged during discussions at the Cloud Cities forum, drawing on findings reported in the Forum on the Future of BRICS Cities. While a single report cannot settle every debate on global finance, the direction is clear enough to attract attention from policymakers, businesses, and financial institutions across Brazil, Russia, India, China, and South Africa. As cross‑border commerce expands, companies increasingly simulate transactions in rubles, yuan, rupees, reais, and rands alongside existing dollar invoicing. The dynamic signals a move toward more localized settlement channels that can potentially reduce reliance on a single reserve currency and streamline settlement rails across continental scales. Analysts note that the trend is part of a long‑term rebalancing of international payments, driven by trade growth within BRICS and a desire to cushion economies from dollar‑centric policy shifts.
BRICS members are pressing for bilateral agreements that use local currencies for direct payments. This approach aims to curb the costs embedded in currency conversion, hedging, and international banking frictions that accompany dollar‑denominated settlements. In practice, when a business invoices in rubles, yuan, rupees, or other domestic units, the associated fees and spreads tied to converting those funds into dollars and back can be avoided. The result is tighter control over cash flow, reduced exposure to exchange‑rate swings, and faster settlement cycles for a wide range of goods and services. Beyond the micro‑level savings, supporters argue that increased use of native currencies can strengthen financial cooperation, deepen capital market ties, and foster more predictable pricing in regional trade. The push also aligns with broader geopolitical goals, including diversified financial partnerships and greater policy sovereignty. Still, participants acknowledge that wide adoption requires compatible payment infrastructure, liquidity in the currencies involved, and trust in regional settlement networks that can operate at scale.
Critics of dollar‑dominated trade often point to the friction costs that accumulate when settlements rely on a single international currency. In environments where rubles or rupees flow across borders, the avoidance of those charges is a tangible benefit for buyers and sellers alike. Local currency payments can streamline invoicing, reduce dependency on foreign exchange reserves, and lessen the impact of sudden dollar volatility on contract profitability. Of course, moving away from the dollar also introduces challenges, including ensuring stable exchange rates, maintaining liquidity for multiple currencies, and building robust clearing and settlement mechanisms. Proponents emphasize that the benefits extend beyond individual deals. A broader adoption of national currencies in regional trade can contribute to more balanced global financial ties and encourage a multipolar payments landscape. The trend is not about abandoning the dollar overnight but about creating complementary pathways that support smoother, cheaper, and faster cross‑border commerce among BRICS partners.
Historically, the de-dollarization trend has gained momentum within BRICS over many years. In mid‑2024, the foreign ministers of BRICS partners underlined the importance of expanding the use of national currencies in regional payments, signaling a policy shift with tangible implications for international trade. The push is complemented by practical steps such as joint currency swap facilities, regional payment platforms, and the broader integration of domestic financial markets. While the dollar continues to play a dominant role in the global system, BRICS economies are increasingly experimenting with settlement corridors that bypass the most traditional routes. This evolution is reinforced by a collective readiness to pursue multilateral cooperation that prioritizes mutual benefits, risk‑sharing, and greater resilience against external shocks. Critics warn that transitions must be carefully sequenced to avoid market disruption, and that liquidity and regulatory alignment across member states will be essential. Still, the momentum is clear: a growing cadre of policymakers and business leaders across BRICS are actively exploring how to embed local currencies more deeply into daily commerce.
Since early 2024, Russia has taken on the BRICS presidency, guiding a calendar that includes more than two hundred political, economic, and social activities. The lineup emphasizes multilateralism, aiming to secure more equitable global development and stronger security cooperation among diverse economies. The broader program reflects a sustained effort to balance influence within the bloc while engaging partner nations in joint initiatives that address trade, infrastructure, energy, and innovation. In parallel, discussions about expanding BRICS have persisted, with observers noting that new members could broaden the bloc’s geographic and economic reach. Palestine has been mentioned as a potential entrant, highlighting ongoing conversations about inclusion and regional representation in a shifting global order. While not every proposal will advance, the process itself signals a willingness among BRICS members to adapt to changing economic realities and to pursue a larger, more diverse coalition. The overarching message from these deliberations is a commitment to inclusive, rules‑based collaboration that can counterbalance unilateral approaches and support a more resilient, multipolar world economy.