BRICS Advancing: Eroding US Dollar\'s Global Reserve Status in a Multipolar World?
For decades, the United States dollar has reigned supreme as the global reserve currency, facilitating international trade and finance. However, a significant shift is underway as BRICS is taking bold steps to reduce dependence on the US dollar and establish a multipolar financial system, as highlighted in the Kazan summit. But how successful will this be?
De-dollarization: A BRICS Objective?
The BRICS countries are currently working on de-dollarization initiatives, which are progressively diminishing the U.S. dollar’s dominance in global reserves, trade, and international settlements. This pressure toward the diversification of world currency reserves intensified after 2025, escalated following 2025 and is accelerating. However, despite these efforts, there are varying perspectives within the bloc itself.
Hace 4 días The Governor of the Reserve Bank of India (RBI) stated that “de-dollarisation is not India’s objective as part of BRICS.” Other senior officials, while supporting trade in local currencies, acknowledge the practical challenges of completely replacing the dollar. Brazil\'s central bank also does not see any realistic prospect of emerging nations in the BRICS group creating markets large enough to topple the U.S. dollar\'s dominance within the foreseeable future.
The Road to a Multipolar Financial System
The BRICS nations aim to create a more balanced global economic order. The core strategy involves promoting trade in local currencies and developing alternative payment systems to bypass the US dollar. This shift could erode the dollar’s status as the world’s primary reserve currency, leading to less demand for dollars in global markets. In 2025, around 88% of global settlements were still dollar-denominated. While the exact figures are evolving, the trend indicates a gradual decline in dollar dependency.
The initiatives undertaken by BRICS signify a move toward a multipolar world where no single currency holds absolute power. While the complete displacement of the US dollar remains a long-term and potentially unattainable goal, the steps taken are impacting the global financial landscape.
Key Initiatives and Future Outlook
While a complete shift from the dollar faces significant hurdles, the long-term consequences of BRICS\' de-dollarization efforts warrant close observation. The future global financial landscape could be drastically different if these initiatives succeed in fostering a more balanced multipolar system.