ЁЯУ░ BRICS Nations Begin Reducing Dependence on U.S. Dollar: A Shift Toward Currency Independence
Date: July 19, 2025
By: The Information Media Desk
In a bold shift toward economic self-reliance and multipolar global finance, the BRICS nationsтАФBrazil, Russia, India, China, and South AfricaтАФhave begun taking concrete steps to reduce their dependence on the U.S. dollar in international trade and finance.
This movement, often referred to as. “de-dollarization,” is gaining momentum as BRICS seeks to promote the use of local currencies and develop alternative financial systems that reduce their reliance on the Western-dominated global banking order.
ЁЯТб Why the Shift Away from the Dollar?
The decision stems from a mix of economic, political, and strategic concerns, including:
U.S. sanctions affecting BRICS members like Russia and Iran
The volatility of the dollar due to inflation and U.S. debt levels
A desire to create regional economic independence
Growing frustration with the dollarтАЩs dominance in global trade and banking systems
ЁЯМН What BRICS Countries Are Doing
India is now buying Russian oil in rupees and UAE dirhams, bypassing the dollar.
Russia and China are conducting most of their trade in yuan and rubles.
Brazil has initiated talks with China to use local currencies in trade.
The New Development Bank (NDB), also known as the BRICS Bank, is funding projects in member states using alternative currencies.
Discussions are underway for a common BRICS currency, possibly backed by gold or digital assets.
ЁЯФо Impact on the Global Economy
The consequences of de-dollarization could reshape the global financial landscape:
Outcome Possible Impact
Decline in global demand for USD May reduce U.S. economic influence
Strengthening of local currencies Boosts economic sovereignty in BRICS nations
Rise of new trade alliances Encourages regional cooperation and cross-border trade
Challenge to global institutions Could weaken IMF, World Bank, and SWIFT dependency
Experts believe that while the dollar will remain powerful, BRICS is laying the foundation for a more balanced and diversified global currency system.
ЁЯУМ What’s Next for BRICS?
At the upcoming BRICS+ Summit, scheduled later this year, discussions are expected to intensify around launching a BRICS digital currency and expanding membership to include countries like Ethiopia, Egypt, Iran, and Argentina.
With the global economy evolving rapidly, BRICS appears determined to take control of its own financial futureтАФwith or without the dollar.
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