US Observes BRICS Currency Efforts as Bloc Aims to Reduce Dollar Dependency
The United States is carefully monitoring ongoing discussions within BRICS about reducing reliance on the U.S. dollar and advancing financial independence, according to Indian international relations expert Subhashish Banerjee. Speaking to Tass, Banerjee explained that while the U.S. is unlikely to directly oppose the bloc’s efforts, it is paying close attention to the potential implications. He stated:
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“Talks about replacing the U.S. dollar with a BRICS currency might create temporary concerns, but these disruptions are likely short-lived.”
The move toward dedollarization has gained momentum among BRICS members, particularly Russia and China, as a way to counter U.S. economic influence. However, India has expressed caution regarding the initiative. Indian Foreign Minister Subrahmanyam Jaishankar clarified that India does not support the idea of full dedollarization. Instead, India has been advocating for the use of local currencies in trade agreements, a step that reduces transaction costs and minimizes exposure to dollar-related volatility.
Sergey Ryabkov, Russia’s BRICS sherpa, emphasized that the bloc’s aim is not to abandon the dollar outright but to mitigate the impact of U.S. financial policies. BRICS nations have already begun conducting trade in national currencies through bilateral agreements, marking a key step toward financial autonomy.
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Currently, BRICS comprises 10 member nations, including Brazil, Russia, India, China, and South Africa, along with newly added members such as Egypt, Iran, the UAE, Ethiopia, and Indonesia. The group has also formed partnerships with several other countries, further bolstering its influence.
The growing push within BRICS for economic collaboration, local currency trade, and possibly a unified currency underscores its goal to reshape global financial structures and reduce the dollar’s dominance.
