During the BRICS summit, leaders emphasized the importance of enhancing trade in local currencies to diminish dependence on the U.S. dollar, driven by geopolitical tensions and economic sanctions. South African President Cyril Ramaphosa advocated for stronger cross-border payment systems, while Iranian President Masoud Pezeshkian pointed out the vulnerabilities of the current financial system.
Despite these discussions, experts remain doubtful about the BRICS' ability to achieve significant de-dollarization. The U.S. dollar still dominates the forex market, comprising 89% of transactions, and the bloc lacks the necessary institutional and financial frameworks to rival the dollar's liquidity and trust.
Additionally, competing interests among member states, particularly between China and India, complicate efforts for deeper financial integration. While some BRICS countries have begun settling trade in local currencies, these moves are largely reactions to U.S. sanctions rather than a coordinated strategy.
Overall, the BRICS' aspirations for de-dollarization face substantial hurdles, including trade imbalances and differing national priorities, making a significant shift away from the dollar unlikely in the near term