Has BRICS Officially Abandoned De-Dollarization?
India and other member nations have halted the BRICS de-dollarization push, favoring national currencies while keeping the U.S. dollar, as concerns grow over China's financial dominance and Western relations.
Even though Russia and China project conflicting messages regarding American currency in cross-border commerce, India maintains a firm position: it does not back de-dollarization, though it simultaneously highlights the importance of prioritizing local currencies for trade. India is engaged in a delicate balancing act between Eastern and Western powers, requiring backing from both sides to bolster its national economy. This ongoing juggling act has ultimately prevented BRICS from fully realizing the de-dollarization ambitions it once aggressively pursued.
Amid ongoing conversations about moving away from the dollar, Russian Ambassador to India Denis Alipov stated during Thursday’s NDTV Defense Summit that the BRICS bloc is not “anti-Western” and does not seek to undermine Western interests. “It is an alternative to other global platforms and organizations, such as the G20, for example, and other international formats. And no one in BRICS has ever spoken in an anti-Western manner or promoted an anti-Western agenda,” he explained.
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BRICS: Is It the End of De-Dollarization Agenda?
For now, yes—BRICS has shelved the push to move away from the dollar. Most member nations, including India, South Africa, Brazil, and the United Arab Emirates, are not on board with the initiative. Only Russia and China have actively championed the concept to serve their own financial objectives, while Iran has joined them primarily out of necessity due to heavy U.S. sanctions. Numerous members harbor concerns that Beijing is leveraging the bloc as a stepping stone to advance its own financial dominance.
Should China secure the upper hand, fellow BRICS nations would find themselves trading under its direct influence and dictation. Consequently, pursuing de-dollarization could prove detrimental to several members. Although there is widespread agreement on utilizing local currencies, the group remains open to the U.S. dollar. “The discussion about the use of the dollar is very indicative in this regard. No one is opposed to the use of the US currency. We, the BRICS countries, favor having alternatives provided by the use of national currencies,” the diplomat emphasized.
