Did BRICS Truly Give Up De-Dollarization?

While China and Russia convey mixed messages regarding the use of the US dollar in cross-border settlements, fellow BRICS member India maintains a clear position. India does not back de-dollarization, though it simultaneously highlights the necessity of prioritizing local currencies for trade. By balancing its relationships with both the East and the West—both of which it relies on to bolster its economy—India performs a delicate balancing act. This diplomatic juggling has ultimately prevented BRICS from fully realizing the de-dollarization goals it once aggressively pursued.

Following ongoing conversations about de-dollarization, Russian Ambassador to India Denis Alipov stated during Thursday’s NDTV Defense Summit that the BRICS bloc is not “anti-Western” and does not push an agenda that opposes 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.

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

For the present moment, BRICS has indeed set aside the de-dollarization agenda. The majority of member states—including South Africa, Brazil, the United Arab Emirates, and India—are not participating. Only Russia and China have aggressively advanced this ideology to satisfy their financial requirements. Iran has also aligned with them, though largely out of necessity due to US sanctions. Furthermore, numerous member nations believe China is leveraging BRICS as a stepping stone to fulfill its own financial ambitions.

Should China gain the upper hand, other BRICS nations would find themselves operating under Chinese influence and trade mandates. Consequently, pursuing de-dollarization would negatively impact many members of the bloc. While the prevailing consensus supports utilizing national currencies, the nations are not fundamentally opposed 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.