At the recent BRICS Summit, leaders emphasized the importance of increasing the use of local currencies for trade within their bloc to lessen dependence on the U.S. dollar. Motivated by geopolitical tensions, economic sanctions, and U.S. tariff policies, these countries, including Russia, China, India, South Africa, and others, expressed a desire to reduce reliance on the greenback. Despite BRICS accounting for significant portions of global economic output, exports, and investment inflows, experts remain skeptical about the bloc's ability to move away from the dollar due to multiple challenges.

The dominance of the U.S. dollar in international trade remains entrenched, with nearly 89% of foreign exchange market activity involving the greenback. While members like Russia and China have shifted much of their bilateral trade to rubles and yuan, these changes have often been driven by external pressures such as sanctions rather than coordinated BRICS policies. The bloc’s 2026 declaration did not propose creating a common currency or concrete mechanisms to expand trade settlements in local currencies, instead asking a task force to examine cross-border payment solutions. Many of the BRICS currencies lack global liquidity and acceptance, making the dollar the preferred choice for most exporters.

Structural issues within the BRICS also impede progress toward de-dollarization. There is a lack of financial and macroeconomic integration across member countries, and significant trade imbalances persist—for example, India’s large trade deficit with China complicates cooperation. Additionally, strategic rivalries between China and India hinder the financial cohesion necessary for deeper economic integration. Each country has differing economic priorities, with Russia and Iran focused on evading sanctions by reducing dollar exposure, China promoting the renminbi’s global use while maintaining capital controls, and India prioritizing the rupee.

Ultimately, while the idea of de-dollarization resonates politically amid rising geopolitical tensions, practical obstacles remain large. Experts point out that no BRICS-led alternative currently rivals the dollar's liquidity, credibility, and global acceptance. For now, the greenback continues to underpin much of the global financial system, with BRICS initiatives toward using local currencies in trade still in early, tentative stages rather than a full-scale shift.