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At an August 2025 BRICS summit where Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) were invited to join the bloc, frustrations As part of the BRICS bloc, Iran and Russia are now making strides to reduce their reliance on the US dollar due to the heavy sanctions imposed by Western countries. In a U.S. President-elect Donald Trump has warned the BRICS countries that if they attempt to replace the “mighty U.S. dollar” they would face “100 percent tariffs and should Iran and Russia are the latest to officially ditch the US dollar, opting to use national currencies for trade. Iran and Russia are both part of the BRICS bloc of countries. Studies examine the trend of BRICS nations using local currencies in trade settlements to reduce reliance on the dollar (Dash, 2025). Evidence of increasing bilateral BRICS: CIS Alliance Consisting of 12 Countries Ditch the US Dollar, Use Local Currencies For 85% Transactions. BRICS member Russia convinced the CIS bloc to

BRICS & Iran Push for Local Currency Use: Ditching the US Dollar

The push to de-dollarize the global economy is gaining momentum, spearheaded by BRICS nations and fueled by growing geopolitical tensions. Iran, a key player in this movement, is actively urging Shanghai Cooperation Organisation (SCO) nations to ditch the US dollar and embrace local currencies for trade settlements.

This shift is driven by several factors, including a desire for greater economic independence and a response to Western sanctions. As part of the BRICS bloc, Iran and Russia are now making strides to reduce their reliance on the US dollar due to the heavy sanctions imposed by Western countries. Iran and Russia are both part of the BRICS bloc of countries. This alliance is increasingly significant.

The BRICS Expansion and De-Dollarization

At an August 2025 BRICS summit where Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) were invited to join the bloc, frustrations with the dollar's dominance were palpable. The expansion itself signals a stronger collective desire to reshape the global financial landscape.

Iran and Russia are the latest to officially ditch the US dollar, opting to use national currencies for trade. This move follows a broader trend, as highlighted by studies that examine the trend of BRICS nations using local currencies in trade settlements to reduce reliance on the dollar (Dash, 2025). The benefits of bypassing the dollar include reduced transaction costs and increased financial sovereignty.

Impact and Future of De-Dollarization

The long-term impact of this de-dollarization effort remains to be seen, but it presents a significant challenge to the US dollar's position as the world's reserve currency. While past warnings, such as a hypothetical one where a U.S. President-elect Donald Trump has warned the BRICS countries that if they attempt to replace the “mighty U.S. dollar” they would face “100 percent tariffs, haven't deterred the movement, the economic consequences are complex.

Furthermore, the move towards local currencies extends beyond the BRICS nations. There is Evidence of increasing bilateral BRICS: CIS Alliance Consisting of 12 Countries Ditch the US Dollar, Use Local Currencies For 85% Transactions. BRICS member Russia convinced the CIS bloc to adopt this approach, indicating a widening acceptance of alternative trade mechanisms.

The ongoing shift towards local currency use by BRICS and SCO nations, with strong support from Iran, represents a significant development in the evolving global financial order. The success of this initiative will depend on the continued cooperation and integration of these economies.

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