BRICS de-dollarization strategy was actually exposed by Chinese economist Jian Lian in recent discussions. He revealed how Beijing has spearheaded Yuan internationalization backed by President Xi Jinping’s vision. Right now, over 52.9% of Chinese payments are being settled in RMB while China systematically reduces its US Treasury holdings across various major financial institutions. China’s dollar bond strategy that was demonstrated in Saudi Arabia signals that the Global South currency shift is accelerating through several key practical mechanisms rather than BRICS reserve currency proposals that have been discussed.

Also Read: BRICS Gold Pact Hits 33 Countries With Russia Leading Metal Exchange Push

BRICS De-Dollarization Insights And Yuan Internationalization Trends

Beijing’s Internal Power Struggle Over De-Dollarization

Chinese bureaucrats remain divided on BRICS de-dollarization even though Xi has catalyzed confidence in Yuan internationalization efforts. Economist Jian Lian explained that PBOC officials along with major state banks actually fear US sanctions, and they’re hesitating on aggressive currency transitions through various major channels. This more conservative approach conflicts with the presidential vision for RMB expansion that’s been pioneered forward.

Russian President Vladimir Putin stated at the 2024 Kazan summit:

“The dollar was used as a weapon. It is true. If they don’t let us work with it, what else should we do? We should seek other alternatives.”

China’s November 2024 China dollar bond strategy placed $2 billion in Riyadh. It was subscribed 20 times over at just 1-3 basis points above US Treasuries through multiple essential market mechanisms. This occurred right at the petro-dollar system’s heart before Trump’s inauguration, which was seen as strategically significant timing across several key geopolitical contexts.

Yuan Backs Real Production Instead Of Speculation

Yuan internationalization serves industrial trade rather than speculation, actually transforming various major commodity markets. The currency enables purchases of manufactured goods, commodities from Russia and Brazil, and also increasingly Middle Eastern oil. As of March 2024, Chinese payments were cleared 52.9% in RMB versus 42.8% in dollars according to recent data that was released.

Putin emphasized at Kazan:

“Use of local currencies instead of the dollar or euro helps to keep economic development free from politics as far as possible in the context of today’s world.”

Kenya converted railway debt from dollars to Yuan. They secured rates below 2% compared to dollar rates that were exceeding 10% through certain critical negotiations. This Global South currency shift demonstrates practical BRICS de-dollarization through bilateral agreements that are being implemented across several key African economies.

Dollar Holdings Are Being Declined Steadily

China reduced Treasury holdings to around $700 billion while maintaining over $3 trillion in total dollar reserves. The first quarter of 2024 saw $53.3 billion dumped in Treasuries and agency bonds according to US Treasury data. Gold reserves increased to 2,264.87 tons, up from 2,235.39 tons previously, which shows a pattern that has accelerated.

Iranian President Masoud Pezeshkian stated:

“The United States is using the dollar as a weapon to control other nations.”

Putin later clarified:

“I have heard a lot of discussion among experts and in journalistic circles that we should think about creating a single currency. But it is too early to talk about this. And we do not have such goals among ourselves.”

Brazilian President Lula da Silva countered:

“BRICS+ is committed to ending US dollar dominance no matter what.”

Also Read: US Dominance Will End Through Non-Conditional Financing by BRICS Bank

Infrastructure Financing Replaces Traditional Speculation

The China dollar bond strategy supports infrastructure financing through Yuan-denominated loans at rates that are under 2% across numerous significant development projects. Chinese banks purchase bonds from African nations, and this creates money that finances engineering services through several key mechanisms. This mechanism advances the Global South currency shift even without requiring BRICS reserve currency consensus. However, BRICS already managed to launch a gold-backed UNIT payment system.

Putin noted:

“The whole world started contemplating whether US dollars should be used since the United States, for political reasons, restricts the use of the US dollar as a universal international payment unit.”

Russia’s BRICS trade reached 90% in local currencies during 2024, which is substantial across multiple essential sectors. Yuan internationalization is progressing through practical trade settlements and also infrastructure projects rather than unified currency schemes that are blocked by consensus requirements through certain critical institutional barriers. BRICS de-dollarization continues advancing through these mechanisms even as formal BRICS reserve currency proposals face internal resistance and technical challenges that need to be resolved across various major policy frameworks.