Did BRICS Officially Drop De-Dollarization Plans?

Even though Russia and China project conflicting messages regarding the use of the greenback in cross-border commerce, India remains firm that it does not endorse de-dollarization, though it simultaneously advocates for prioritizing local currencies in trade. India continues to walk a tightrope between East and West, requiring backing from both sides to bolster its economy. This delicate balancing act has prevented BRICS from fully realizing the de-dollarization momentum it once vigorously pursued.

Following recent debates over de-dollarization, Russian Ambassador to India Denis Alipov stated at the NDTV Defense Summit on Thursday that the bloc is not “anti-Western” and does not advance an agenda opposed to 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 noted.

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BRICS: Is It the End of De-Dollarization Agenda?

At present, yes—BRICS has shelved the de-dollarization initiative. Most nations within the bloc, including India, the United Arab Emirates, South Africa, and Brazil, do not support it. Only China and Russia have aggressively driven this ideology to serve their financial goals. Iran has aligned with them, though largely out of necessity due to US sanctions. Numerous members harbor concerns that Beijing is leveraging BRICS as a stepping stone to fulfill its own financial ambitions.

Should China gain the upper hand, fellow BRICS members would find themselves trading under Beijing’s sway and dictation. Consequently, the push to abandon the dollar would negatively impact several member states. While the collective preference leans toward utilizing national currencies, there is no active opposition to the US 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.