BRICS treads carefully on de-dollarisation: Finance track talks payments, not a common currency
BRICS finance ministers and central bank governors have adopted a cautious approach toward de-dollarization, focusing on interoperable payment systems rather than a common currency. While some leaders like Vladimir Putin and Masoud Pezeshkian advocate for moving away from the U.S. dollar, the bloc's formal policy remains focused on incremental, voluntary cooperation.
Why it matters
The BRICS bloc's stance on currency policy has significant implications for global financial stability and the future of the U.S. dollar as a reserve currency.
For a bloc that has spent years fuelling speculation about challenging the dollar's dominance, the formal position enunciated in a joint statement after the meeting of Finance Ministers and central bank Governors of BRICS nations remains more cautious than the rhetoric of some of its members.
There is no mention of a common BRICS currency or a formal call for replacement of the U.S. dollar. Instead, the document sticks to the more incremental, technocratic language the bloc has used since Rio and Kazan: interoperable payment systems, local-currency settlement and voluntary cooperation among members who "respect national priorities."
Acknowledge efforts of the BRICS Payment Task Force (BPTF) towards exploring "pragmatic solutions for efficient cross-border payment mechanisms," the bloc said. "We encourage the BPTF to continue discussions, building on the ongoing work, to facilitate practical solutions for cross-border payments among BRICS countries, which are fast, low-cost, more accessible, efficient, transparent, and safe."
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