BRICS Keeps De-Dollarisation On A Cautious Track, Payments Take Priority Over Common Currency

New Delhi: BRICS nations are taking a measured approach towards de-dollarisation, focusing on cross-border payment systems and greater use of local currencies rather than pursuing a common BRICS currency.

A joint statement following the meeting of BRICS finance ministers and central bank governors made no reference to replacing the US dollar or creating a shared currency.

Instead, the grouping backed interoperable payment systems, local-currency settlements and voluntary cooperation based on national priorities.

Cross-Border Payments Take Centre Stage

The BRICS Payment Task Force has been encouraged to explore practical solutions for making cross-border payments faster, cheaper, transparent and safer.

The bloc also supported greater interoperability between payment and messaging channels and increased settlement of trade and investments using BRICS local currencies.

The New Development Bank (NDB) has been asked to expand local-currency financing, diversify funding sources and mobilise capital for development projects.

Iran, Russia Push De-Dollarisation Debate

Iranian President Masoud Pezeshkian made a stronger case for reducing dollar dependence at the BRICS Business Forum. He called for wider use of national currencies in intra-BRICS trade alongside mechanisms to manage currency risks.

Russian President Vladimir Putin also argued for stronger financial alternatives as sanctions and other restrictions increasingly affect international trade.

Both Iran and Russia have strong incentives to develop payment channels outside Western-dominated financial systems.

Why Replacing Dollar Remains Difficult

Despite the push, replacing the dollar remains challenging. Its dominance is supported by deep US financial markets and its extensive role in international trade, commodities and global finance.

BRICS currencies also differ widely in convertibility and international acceptance. Trade imbalances can leave countries holding currencies they have limited opportunities to invest or spend.

India, meanwhile, supports expanding local-currency trade and cross-border payment connectivity.

Commerce and Industry Minister Piyush Goyal has called for BRICS members to link their payment systems, highlighting India's Unified Payments Interface (UPI) as a potential model for stronger cross-border financial connectivity.