Although the bloc has long stoked speculation about contesting the dollar’s supremacy, the official stance outlined in a joint statement following the meeting of BRICS finance ministers and central bank governors is notably more restrained than the rhetoric voiced by some of its members.
The document makes no reference to a shared BRICS currency or any official proposal to supplant the US dollar.
Rather, it maintains the gradual, technocratic tone the bloc has adopted since the Rio and Kazan meetings, emphasizing interoperable payment systems, settlements in local currencies, and voluntary collaboration among members who "respect national priorities."
Recognising the work of the BRICS Payment Task Force (BPTF) to examining practical options for more efficient cross-border payment systems, the bloc stated, "We urge the BPTF to maintain its discussions, drawing on ongoing efforts, to enable workable cross-border payment solutions among BRICS nations that are rapid, low-cost, more inclusive, efficient, transparent, and secure."
However, remarks by Iranian President Masoud Pezeshkian and Russian President Vladimir Putin on Friday at the BRICS Business Forum in New Delhi underscore why de-dollarisation continues to be a core issue in BRICS discussions.
Pezeshkian presented the clearest argument for reducing reliance on the dollar. Addressing the Forum, the Iranian president stated that BRICS should build a more robust system for trade, investment, and financing, and increase the use of their national currencies.
He contended that the global financial system’s reliance on a small group of currencies exposes economies to political disruptions.
For Iran, the matter is especially pressing.
Tehran faces broad US sanctions and views the expanded use of national currencies, alternative payment systems, and BRICS institutions as a means to lessen its vulnerability to financial constraints enforced via the dollar-centered framework.
The Russian president said attempts were being made to restrict international trade through sanctions, secondary sanctions and other measures, and argued that BRICS should build what he described as a "new, sustainable platform for global growth."
The United States has repeatedly imposed sanctions on Russia and on nations that conduct trade with it, thereby limiting Russia’s access to the dollar system and the broader European financial infrastructure. Russia has strong incentive to develop financial channels outside Western systems after sanctions.
The joint statement released following the meeting of BRICS finance ministers and central bank governors in Mumbai, held ahead of the BRICS Summit, stated: “We recognize the efforts made to examine cross-border interoperability of payment and messaging systems, as well as the discussions on encouraging trade settlements and investments in BRICS local currencies, while respecting national priorities and recognizing that there is no universal, one-size-fits-all solution.”
It went on to state that the grouping backs continued efforts of the New Development Bank (NDB) "to mobilise resources, expand local currency financing, strengthen project-preparation facilities, diversify funding sources, foster innovation, and support high-impact projects that contribute to inclusive and sustainable growth in member countries."
De-dollarisation would mean settling more bilateral trade in national currencies
connecting or enhancing payment and communication platforms
minimizing the involvement of middlemen in international transactions
increasing local currency lending by the New Development Bank and reinforcing BRICS financial safety nets
creating guarantees and related tools to attract and leverage private investment
providing members with alternative options when sanctions or financial constraints interfere with standard payment methods.
Problem to De Dollarisation
However, replacing the dollar will be challenging, if not impossible.
The dollar’s dominance is supported by the depth and liquidity of U.S. financial markets, its central role in global trade and commodity pricing, and the vast scale of dollar-denominated financial assets.
BRICS countries, meanwhile, confront their own challenges: their currencies are at varying stages of internationalization, many remain only partially convertible, and trade flows among them are frequently highly imbalanced.
These disparities pose a core challenge for trade conducted in local currencies. When one country builds up the currency of another member, it must find a way to invest or spend those reserves. In the absence of sufficiently deep markets, the transaction may ultimately have to be converted into a third currency.
During the BRICS Business Forum on Friday, Commerce and Industry Minister Piyush Goyal urged BRICS nations to integrate their payment systems and expand trade using local currencies. He cited India’s Unified Payments Interface as a model of payment infrastructure capable of enabling broader cross-border connectivity.
The joint statement specifically calls on the New Development Bank to increase local-currency lending and broaden its range of funding sources.
It also backs the BRICS Multilateral Guarantees initiative, designed to enhance the creditworthiness of projects, reduce financing costs, and draw private investment into development initiatives.