Published: 11:12 AM, 08 September 2026
BRICS Leaders Most Likely to Talk About Alternative Currency to US Dollar
The central question is no longer whether BRICS can replace the US dollar immediately, but whether it can provide credible alternatives that give emerging economies greater choice in international trade and finance. First Post
Leaders of the BRICS group are expected to give considerable attention to reducing dependence on the US dollar and strengthening the use of local currencies in international trade when they meet for their upcoming summit in New Delhi. The issue has gained increasing importance as BRICS members seek greater financial independence and a more multipolar international economic system.
BRICS, originally formed by Brazil, Russia, India, China, and South Africa, has expanded in recent years to include several other emerging economies. The group's growing economic influence has strengthened calls for greater cooperation in trade, investment, banking, and cross-border payments. However, discussions about an alternative to the US dollar should not necessarily be interpreted as an immediate plan to create a single BRICS currency.
The idea of a common BRICS currency has attracted considerable attention in recent years. Nevertheless, member countries have different economic structures, monetary policies, and national interests. Instead of immediately creating a common currency, the group has increasingly focused on practical measures such as settling bilateral trade in national currencies and developing alternative payment mechanisms.
The push to reduce dollar dependence is driven by several factors. Some BRICS members are concerned about the effects of US financial sanctions and the vulnerability created by dependence on dollar-based payment systems. Others want to reduce transaction costs and exchange-rate risks when conducting trade with fellow emerging economies. The increasing use of digital payment technologies has also made alternative financial arrangements more technically feasible.
At previous BRICS meetings, leaders have supported greater use of local currencies. They have encouraged member countries to strengthen local-currency settlements and develop faster, cheaper, safer, and more efficient cross-border payment systems. These initiatives suggest that BRICS is concentrating more on financial infrastructure than on immediately replacing the dollar with a new currency.
One possible area of cooperation is the linking of national payment systems. India has developed the Unified Payments Interface, China operates the Cross-Border Interbank Payment System, and Brazil has its Pix instant-payment network. Greater cooperation among such systems could allow businesses to make international payments more directly in local currencies. Discussions have therefore increasingly focused on digital payment technology, settlement systems, and central bank digital currencies.
Economists, however, caution against predicting the rapid decline of the dollar. The US currency remains deeply embedded in global trade, international finance, commodity markets, and central bank reserves. Many international transactions continue to involve the dollar even when neither party is American. The dollar's enormous financial markets, liquidity, and established international infrastructure give it advantages that would be difficult for a new currency to reproduce quickly.
There are also significant obstacles within BRICS itself. Member countries have different economic priorities and sometimes conflicting political interests. China and India, for example, may have different views about the future of international finance. Smaller members may also be reluctant to become overly dependent on the currency of another major economy. Creating a common currency would require deep monetary coordination, shared institutions, and considerable political trust.
Therefore, the most realistic outcome of BRICS discussions may be gradual rather than revolutionary. Instead of introducing a single currency, the bloc could encourage more trade in national currencies, establish currency-swap arrangements, improve cross-border payment networks, and strengthen financial institutions such as the New Development Bank. This approach could gradually reduce dependence on the dollar without attempting to eliminate it overnight.
For developing countries, the debate carries particular significance. A more diversified international payment system could provide additional choices for trade and investment. Countries could potentially reduce exposure to fluctuations in the dollar and gain greater flexibility in conducting transactions with major emerging markets. Bangladesh and other developing economies will also be watching these developments closely because their international trade, remittances, and foreign-exchange management are closely connected to the global financial system.
At the same time, replacing a dominant international currency is not simply a political decision. A successful alternative would require stable currencies, deep financial markets, reliable payment infrastructure, investor confidence, and strong economic cooperation among participating countries.
The upcoming BRICS discussions are therefore likely to focus less on announcing a dramatic new currency and more on building the financial foundations for greater use of local currencies. The dollar is unlikely to disappear from international commerce anytime soon, but the growing BRICS effort could gradually create a more diversified global monetary system.
The central question is no longer whether BRICS can replace the US dollar immediately, but whether it can provide credible alternatives that give emerging economies greater choice in international trade and finance.
