BRICS Moves to Reduce Dollar Dominance, Washington Wary

BRICS has taken initiatives to increase trade and cross-border transactions in local currencies to reduce dependence on the US dollar. At the 18th BRICS Summit in New Delhi, India, greater cooperation in the global economy and financial system, along with increased use of local currencies, received significant attention.

Leaders of the 11 BRICS member countries attended the summit, held on September 12 and 13. The member countries are Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the United Arab Emirates.

The BRICS economic discussions emphasised increasing trade and investment in member countries’ own currencies and coordinating cross-border payment systems. This could create an opportunity to reduce dependence on the dollar in international trade to some extent.

However, BRICS has not yet decided to introduce a common currency as an alternative to the dollar. Likewise, there is no indication that the dollar’s dominance in the global financial system is coming to an end. Instead, cooperation on local-currency transactions and alternative payment systems is gradually expanding.

The latest BRICS summit discussed global trade, economic cooperation, cross-border payment systems and supply-chain stability. Despite political and economic differences among member states, there is interest in strengthening their economic capabilities outside the US dollar-dependent financial system.

Washington is also closely watching the BRICS initiative. If trade in local currencies and alternative payment systems expand, the use of the US dollar in international transactions and US financial influence could decline to some extent.

BRICS is currently one of the world’s major economic blocs. The 11-member grouping represents a significant share of the global economy and trade. India is serving as BRICS chair for the fourth time in 2026.

Source: Reuters