BRICS bid to dethrone the dollar within a decade may not materialize

Business Insider

22-05-2025

Brazil's central bank has expressed doubt about the likelihood of BRICS nations displacing the U.S. dollar as the dominant global currency within the next decade.
Brazil's central bank expresses skepticism about BRICS replacing the U.S. dollar as the dominant global currency
Analysts note growing pressures, such as trade tensions and sanctions, prompting calls within BRICS for financial sovereignty.
Despite member states, such as Russia and China, advocating for alternatives, Brazil emphasizes pragmatic steps over aggressive monetary shifts.
Monetary Policy Director in Brazil's Central Bank, Nilton David, stated recently that there is no realistic prospect of emerging economies within the BRICS group building markets large enough to challenge the dollar's dominance over the next 10 years
David, while speaking during a central bank webcast, said despite their growing economic clout, there is no realistic scenario in which the BRICS nations could build financial systems or markets large enough to rival the dollar's global influence.
'There is not a meaningful stock of BRICS-denominated assets that could offset the dollar at the moment,' David noted. 'I don't think that will change over the coming decade.'
His remarks come amid ongoing discussions within the BRICS bloc about long-term de-dollarization and the potential creation of alternative currency frameworks to support intra-bloc trade.
While David acknowledged that alternative payment tools could help facilitate bilateral trade deals, he emphasized that such mechanisms remain far from sufficient to challenge the dollar's entrenched position in the global financial system.
Reuters reports that Brazil's position highlights a pragmatic view within the bloc's leadership, even as member states like Russia and China continue to push for financial sovereignty and a multipolar currency landscape.
BRICS long-term monetary goals
The long-term monetary goals of the BRICS bloc comprising Brazil, Russia, India, China, and South Africa, with new members such as Egypt, Iran, Ethiopia, and the UAE joining in 2024 revolve around reducing dependence on the U.S. dollar and promoting a more multipolar global financial system.
Central to this ambition is the discussion of a potential BRICS currency, part of a broader de-dollarization strategy aimed at replacing the dollar as the dominant medium for international trade and financial transactions.
These efforts have gained momentum in response to the U.S.-China trade war and the imposition of U.S. sanctions on both China and Russia, which have fueled calls within the bloc for financial sovereignty and protection from Western monetary influence.
The initiative has drawn sharp criticism from the United States.
President Donald Trump vowed to impose strict sanctions on any country or entity that supports agreements designed to undermine the dollar's global role. ' The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is OVER, ' Trump wrote on Truth Social.
An earlier Reuters report had already highlighted Brazil's cautious stanc e toward aggressive de-dollarization as it assumed the BRICS presidency.
Under Brazil's leadership, the focus has shifted toward practical steps such as linking payment infrastructures and exploring blockchain protocols endorsed by global regulatory bodies like the Bank for International Settlements.