Even though Russia and China project conflicting messages regarding how the US dollar is used in cross-border commerce, India maintains a firm position: it rejects de-dollarization while simultaneously prioritizing local currencies for trade. India’s efforts to balance relations between East and West stem from its reliance on both sides to boost its economy. This delicate balancing act has prevented BRICS from fully realizing the de-dollarization goals it once pushed aggressively.
Amid ongoing conversations about moving away from the dollar, Russian Ambassador to India Denis Alipov stated during Thursday’s NDTV Defense Summit that BRICS is not “anti-Western” and does not seek to undermine 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?
For now, yes—BRICS has shelved the de-dollarization push. Most member nations, including India, South Africa, Brazil, and the United Arab Emirates, do not support it. Only Russia and China have actively pursued this ideology to serve their financial objectives. Iran has joined them, though largely out of necessity due to US sanctions. Several members harbor concerns that China is leveraging BRICS as a tool to advance its own financial ambitions.
Should China gain dominance, other BRICS nations would find themselves trading under Chinese influence and terms. Consequently, pursuing de-dollarization could harm several members of the bloc. Although the general consensus supports utilizing national currencies, opposition to the US dollar does not exist. “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.