Is the BRICS SCO alliance merging to challenge US dollar supremacy? The global financial landscape is evolving, and the rise of BRICS (Brazil, Russia, India, China, and South Africa) alongside the Shanghai Cooperation Organisation (SCO) is a significant factor. One of the earliest initiatives by BRICS was to promote the use of local currencies in international transactions, reducing dependence on the US dollar. This move is gaining momentum, particularly with initiatives like The BRICS Cross-Border Payment Initiative (BCBPI) which will use national currencies, instead of the US dollar.

This ambition to dethrone the dollar is not merely theoretical. Russia\'s finance ministry and central bank released a proposal pushing for greater use of national currencies in trade with partner countries. Furthermore, China, the world’s largest energy importer, and Russia, the leading energy exporter, are mobilizing within BRICS to advance “yuan oil futures”, thereby challenging the petrodollar system. This combined effort aims to bypass the US dollar in international energy transactions.

The influence of the BRICS SCO alliance extends beyond trade. Their combined economic and political power presents a compelling alternative to the established Western-dominated global order. The increasing use of national currencies in trade, coupled with the development of alternative payment systems, suggests a deliberate strategy to reduce reliance on the US dollar and assert greater economic autonomy.

The rise of BRICS and the SCO signals a shift in global power dynamics. Will these alliances challenge Western dominance? Explore their impact with Muhammad Faraan. The question remains: How far will this de-dollarization trend go, and what will be the long-term consequences for the global financial system?