Noida, Sep 14 (APAC Media): BRICS has stopped short of endorsing a common currency or calling for an outright replacement of the U.S. dollar, even as some of its most vocal members continue to push for greater use of national currencies and alternative financial channels.
The cautious position was reflected in a joint statement issued after a meeting of BRICS finance ministers and central bank governors in Mumbai ahead of the bloc’s summit in New Delhi.
Rather than setting out a plan to displace the dollar, the statement focused on practical measures such as interoperable payment systems, local-currency settlements and voluntary cooperation among member countries.
The statement said the BRICS Payment Task Force (BPTF) had been working on “pragmatic solutions for efficient cross-border payment mechanisms” and encouraged it to continue discussions aimed at developing payment systems that are “fast, low-cost, more accessible, efficient, transparent, and safe.”
“We acknowledge the work done to study the cross-border interoperability of payment and messaging channels and the discussions on promoting trade settlements and investments using BRICS local currencies,” the statement said, while stressing that members would respect national priorities and that there was “no one-size-fits-all approach.”
The measured language stands in contrast to increasingly forceful calls from some BRICS leaders for de-dollarisation.
Iranian President Masoud Pezeshkian made one of the clearest arguments for reducing reliance on the dollar at the BRICS Business Forum in New Delhi on Friday.
“One of the most important steps is to expand the use of national currencies in trade among the members,” Pezeshkian said, arguing that this should be supported by mechanisms to manage currency risks and facilitate reciprocal settlements.
He said the concentration of the international financial system around a limited number of currencies had made economies vulnerable to political shocks.
For Tehran, de-dollarisation is not simply a long-term economic objective but a practical response to U.S. sanctions. Iran has sought to expand the use of national currencies and alternative payment arrangements to reduce its exposure to restrictions imposed through the dollar-based financial system.
Pezeshkian has also pointed to the New Development Bank, the BRICS-backed lender, as a potential vehicle for strengthening financial cooperation among members and reducing dependence on the U.S. currency.
Russian President Vladimir Putin also used the forum to argue for a more resilient international economic architecture, citing the use of sanctions and secondary sanctions as barriers to trade.
Russia, which has faced sweeping Western sanctions since its invasion of Ukraine, has a strong incentive to develop payment and financial channels outside traditional Western systems.
The competing messages highlight the central challenge facing BRICS’ de-dollarisation agenda: while several members want to reduce their dependence on the dollar, the bloc as a whole remains focused on incremental, voluntary steps rather than a single alternative currency or unified financial system.
For now, BRICS appears to be pursuing de-dollarisation through practical alternatives — expanding local-currency trade, improving cross-border payments and strengthening financial cooperation __ rather than declaring a direct challenge to the dollar’s global dominance.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
Also Read:
