Will the BRICS Bank use the US dollar to pay debts in 2024? This is a question on many minds as the BRICS nations actively explore alternatives to the dollar for international transactions. Should the BRICS nations establish a new reserve currency, it would likely significantly impact the US dollar, potentially leading to a decline in demand, or what's known as de-dollarization.

The BRICS countries are increasingly focused on reducing their reliance on the US dollar, particularly in trade and debt settlements. This strategic move further reinforces BRICS' long-term mission of de-dollarization, and it is likely that the BRICS bank will continue to avoid the U.S. Dollar in 2025. The New Development Bank (NDB), often referred to as the BRICS Bank, is actively seeking to conduct more transactions in member countries' currencies.

One key initiative is the BRICS Cross-Border Payment Initiative (BCBPI) will use national currencies, instead of the US dollar. Russia’s finance ministry and central bank released a statement highlighting this focus. This initiative aims to facilitate trade and investment among BRICS members using their own currencies, further diminishing the role of the US dollar.

The expansion of the BRICS bloc to include new member states has also fueled speculation about the dollar's future. Given the recent expansion of the “BRICs” countries to include five new members, will the US dollar remain the world’s reserve currency? Franklin Templeton and other financial institutions are closely monitoring these developments.

While a complete abandonment of the US dollar in 2024 for all BRICS Bank transactions is unlikely, the trend is clearly towards diversification and a reduction in dollar dependency. Expect to see a continued push towards using local currencies and exploring alternative payment systems within the BRICS framework.