Did BRICS Officially Drop De-Dollarization Plans?
While Russia and China are sending mixed signals about the usage of the US dollar in cross-border transactions,…
While China and Russia offer mixed signals regarding US dollar usage in cross-border commerce, India maintains a firm position: it does not back de-dollarization, though it continues to prioritize local currencies for trade. India performs a delicate balancing act between East and West, relying on backing from both sides to bolster its economy. This strategic juggling is precisely what has prevented BRICS from fully realizing the de-dollarization potential it once aggressively pursued.
Following ongoing discussions about de-dollarization, Russian Ambassador to India Denis Alipov stated during Thursday’s NDTV Defense Summit that the BRICS bloc is not “anti-Western” and does not advance an agenda that works against Western interests. “It is an alternative to other global platforms and organizations, such as the G20, for example, and other international formats. And no one in BRICS has ever spoken in an anti-Western manner or promoted an anti-Western agenda,” he explained.
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BRICS: Is It the End of De-Dollarization Agenda?
At present, BRICS has indeed set aside the de-dollarization initiative. A majority of the member states—including South Africa, Brazil, the UAE, and India—are not participating. Only Russia and China have aggressively pushed this ideology to satisfy their own financial objectives. While Iran also aligns with them, its motivation stems largely from helplessness due to US sanctions. Numerous members harbor concerns that China is leveraging BRICS as a springboard to achieve its own financial ambitions.
Should China gain the upper hand, fellow BRICS nations would find themselves operating under Beijing’s influence and trade dictates. Consequently, pursuing a de-dollarization agenda would negatively impact many within the bloc. Although the consensus supports utilizing local currencies, members remain open to the US dollar. “The discussion about the use of the dollar is very indicative in this regard. No one is opposed to the use of the US currency. We, the BRICS countries, favor having alternatives provided by the use of national currencies,” the diplomat emphasized.
Frequently Asked Questions
Has BRICS completely abandoned the de-dollarization agenda?
Yes, for the time being, the bloc has moved away from the de-dollarization agenda because the majority of its members—such as India, the UAE, South Africa, and Brazil—do not support it.
What is India’s stance on the US dollar and de-dollarization?
India clearly states that it does not support de-dollarization. However, the country emphasizes the importance of prioritizing local currencies for trade while balancing relations between the West and the East.
Is BRICS considered an anti-Western organization?
According to Russian Ambassador to India Denis Alipov, BRICS is not “anti-Western” and does not promote an agenda against Western interests, serving instead as an alternative global platform comparable to the G20.
Which countries are driving the push away from the US dollar?
China and Russia have aggressively pursued de-dollarization to meet their financial needs, with Iran also aligning with them largely due to US sanctions.
Why are some BRICS members hesitant about de-dollarization?
Many members worry that China is using BRICS as a springboard to fulfill its own financial ambitions, which could force other nations to operate under Chinese influence and trade dictates.
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