The global economy has seen no shortage of increased geopolitical tensions in 2025. That may be set to increase yet again, as the BRICS bloc has taken another major step toward ditching the US dollar in trade. Indeed, the economic alliance has continued its years-long pursuit of de-dollarization of its operations.
With the 2025 summit fast approaching, the bloc has its sights set on continuing to promote its own local currencies. Amid protectionist policies from the West, those efforts have only been emboldened. Now, it is set to push those actions into overdrive with its most recent decision.
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BRICS De-Dollarization Takes Another Step in Key Trade Development
The BRICS economic alliance has long sought to embrace de-dollarization at a functioning level. Indeed, it was so much of a focus that it caught the ire of US President Donald Trump. Shortly after his election win, he threatened 150% tariffs on the bloc simply for their moves to lessen the dominance of the global reserve asset.
Yet, they have not turned away from that approach. In fact, the United States’ America-first tariff policy—which introduced a sweeping 10% on all trade partners—has only made the process all the more urgent. Now, the BRICS bloc has taken yet another major step toward ditching the US dollar in trade.
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Specifically, BRICS foreign ministers are expressing their intention to enhance efforts to ditch the greenback in trade. At a meeting that took place recently, an official Chair statement highlighted this continued shift. It denotes the importance of the bloc’s focus on creating new monetary tools that lessen US dollar usage in trade settlements.
“The ministers underscored the importance of the enhanced use of local currencies in trade and financial settlements between BRICS countries and their trade partners,” the statement said. “They emphasized the importance of continuously expanding local currencies financing,” it adds.
Moreover, it clearly discusses “strengthening innovation in investment and financing tools and acknowledging the initiative to create a new investment platform to boost” inflows into BRICS nations. All the while, it works to decrease exposure to and reliance on the US dollar. More information on specific initiatives should come to pass at the upcoming BRICS 2025 summit.