The US dollar has stood as the world’s reference currency for eight decades, a status that began after World War II. It commands near-absolute priority in the trade of raw materials, in financial markets, and as a core reserve asset for many governments. Roughly eight or so out of ten global transactions are settled in dollars. Yet a number of developing economies are pushing back, with BRICS nations—Brazil, Russia, India, China and South Africa—using the Johannesburg meeting to press for monetary reforms and a greater role for local currencies in trade.
Delegates will discuss how to progress toward dedollarization and how to expand the use of domestic currencies in cross-border commerce, potentially at the expense of the dollar. Brazilian President Luiz Inácio Lula da Silva urged concrete steps at the summit toward a common reference currency that would reduce reliance on a single foreign currency. He asked, why should Brazil and China not transact primarily in their own currencies or another shared reference currency, instead of defaulting to dollars? In his view, Brazil and China possess the economic heft to conduct much of their trade in their own currencies or a shared basket of currencies.
Some analysts regard the idea of a common BRICS currency as unlikely because the group’s members are so diverse. Others see more promise in a reference basket of currencies that could diminish the dominance of the dollar. The yuan, ruble, and perhaps the rupee are often discussed as the leading components for such a basket. Gold reserves remain a strategic tool for the central banks of these large economies, seen as a safeguard against currency risk. Critics argue that the dollar’s value is not backed by tangible assets, which some believe fosters inflation. The broader issue is not merely economic; it is geopolitical, with wide-ranging implications for global power dynamics.
One analyst framed the discussion as a serious effort to create parallel currency circulation through a basket of the strongest potential members, including the yuan, ruble, and possibly the rupee. The feasibility of moving away from a single dominant currency is acknowledged as historically plausible but requires meaningful coordination and trust among diverse economies. A fixed-rate currency basket, if pursued, would demand careful design and governance rules to ensure stability.
A senior economist who tracks Asia-Pacific markets notes that the BRICS bloc faces skepticism about a unified currency. The economies operate on different schedules and regulatory frameworks, and bilateral trade agreements vary widely. The question remains: what would be the reference currency, and which assets would anchor a future BRICS monetary system? The analysis suggests that while a new single currency is unlikely, increasing the use of local currencies in commerce is a more practical goal, provided there is progress toward broader currency convertibility.
Another voice in the debate argues that a broader shift toward regional currencies is plausible, but only in the context of extensive trade in goods and raw materials. The proportion of such exchanges today remains modest relative to total cross-border activity, and most financial flows still run through dollars. The potential expansion of local currencies hinges on factors like convertibility and the ability to settle obligations efficiently across borders.
Vladimir Putin pointed out that just a portion of BRICS trade is settled in dollars, highlighting that the dollar’s role as a global reserve currency appears less dominant than in the past. Observers note that the dollar’s share in official foreign exchange reserves has decreased since the early 2000s, reflecting a diversification trend among many economies. These shifts occur alongside ongoing debates about how reserve assets should be managed in a multipolar world.
half of humanity
BRICS accounts for roughly four in ten people on the planet, totaling more than three billion people, with China and India at the forefront. The group also commands about a quarter of global gross domestic product and a sizable fraction of world trade. The bloc continues to attract interest from many nations seeking a seat at a broader table, with numerous candidates expressing interest in observer status as development agendas and regional influence evolve.
The BRICS forum has grown as more countries seek alternative alignments in international economics and governance. While observers participate in meetings and dialogues, the core members continue to test ideas about coordination, trade arrangements, and the possible expansion of the group’s influence on global financial architecture. The evolving stance on currency use and economic cooperation remains a defining feature of the bloc’s strategy moving forward.
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At the leadership level, a request was made to accelerate membership expansion, with proponents arguing that broader participation would contribute to a fairer global governance system. BRICS attracts many non-aligned countries, though its composition remains diverse and its policies uneven. The bloc’s evolution reflects a broader conversation about how regional powers can shape international order, particularly in the context of conflict and geopolitical realignments. In recent statements, member governments have signaled a preference for constructive dialogue as a path toward resolving tensions around Ukraine and related crises.
gold hoarding
The end of the Bretton Woods era left the dollar unbacked by gold, with the metal’s influence shifting over time. Since then, monetary policy has depended on domestic institutions and trust among markets, with inflation and currency values reflecting a mix of political and economic decisions. Some BRICS members view gold as a fundamental store of value and a potential counterweight to a debt-heavy, fiat system. Reports note ongoing central bank purchases, particularly in countries that have pursued diversification away from dollar-dominated reserves. The current narrative points to a growing emphasis on gold as part of a broader strategy to enhance financial resilience and preserve purchasing power in a volatile global environment.
Public discourse highlights that India and China have shown renewed interest in accumulating gold as a hedge against currency volatility and policy shifts. Analysts observe that certain BRICS economies have increased gold holdings in response to price fluctuations and shifts in international demand. While the specifics vary, the trend underscores a broader search for durable anchors in a changing monetary landscape.