At the recent BRICS Summit, leaders championed the idea of increasing the use of local currencies in trade among member countries as a way to reduce dependence on the U.S. dollar. This push stems largely from frustrations over geopolitical tensions, U.S. sanctions, and tariff policies that have hurt some BRICS nations like Russia and Iran. While the bloc represents a significant portion of global economic output and trade—27% of world GDP and 24% of merchandise exports in 2024—the actual share of intra-BRICS trade remains modest, at about 5% of global trade.

The dominance of the U.S. dollar in global finance remains strong, with it accounting for 89% of the forex market as of April 2026. This includes major commodities like oil and gold, which continue to be priced in dollars. Experts point out that despite BRICS leaders’ calls to expand trade in national currencies, progress has been slow and largely symbolic. Initiatives such as the BRICS Payment Task Force seek practical solutions for cross-border payments, but the bloc’s currencies still lack the deep liquidity and trust needed for global adoption, limiting exporters’ willingness to move away from dollar invoicing.

Significant obstacles hinder de-dollarization efforts within BRICS, notably the lack of financial integration and mutual trust, particularly between China and India. These two large economies are direct competitors in manufacturing, technology, and trade, with India running a large trade deficit with China. This rivalry, coupled with diverse priorities—Russia and Iran’s desire to avoid sanctions risks, China’s controlled push for the renminbi’s international use, and India’s own interest in the rupee—creates friction that undermines effective collaboration on creating alternatives to the dollar.

Ultimately, the U.S. dollar retains unmatched global liquidity, credibility, and acceptance, making it difficult for any BRICS-led currency or arrangement to replace it in the near term. Political and economic differences among member countries, combined with the entrenched dominance of the dollar in global markets, mean that talk of de-dollarization remains mostly aspirational. Despite the rhetoric, large-scale shifts away from the greenback have yet to materialize, with the path forward involving incremental progress rather than sweeping change.