Russia’s President Vladimir Putin proudly displayed a mock-up currency bill at the 16th summit in Kazan this year. The BRICS alliance clarified that the banknote is unofficial and was only a display presented by Putin. The theatrics of a BRICS currency followed Russia’s de-dollarization agenda to evade sanctions.

Also Read: BRICS: India Extends CBDC Payments to New Countries

However, the de-dollarization agenda has no takers even among the existing BRICS members. Countries like India, South Africa, and Brazil are slowly taking a step back as the dust settles after the summit. Only desperate countries like Russia, China, and Iran are advancing de-dollarization using BRICS as a stepping stone.

Also Read: BRICS: Morgan Stanley Predicts the Future of the US Dollar

BRICS: Russia & China’s De-Dollarization Plans Find No Takers

brics russia china xi jinping vladimir putin president
Source: AtlanticCouncil.org

No serious development about launching a new BRICS currency is taking shape within the bloc. The formation of a BRICS currency is consensus-based and needs the approval of all members before taking shape. India has distanced itself from the de-dollarization agenda despite being a member of the BRICS alliance.

Also Read: BRICS: India Provides Update on CBDC Currency

India needs the US dollar to survive, as without it, its goal of becoming the third-largest economy will stall. The Indian economy is closely tied to businesses in the US for the IT sector, not other BRICS countries. The de-dollarization initiative pushed by BRICS members Russia and China will only hamper India’s economy and businesses.

US Dollar Currency Bills Notes USD DXY Index
Source: CNN

China and Russia are only using the BRICS bloc to further their agenda of global financial domination. Even Iran has joined the bandwagon as its economy is battered by US sanctions. While BRICS de-dollarization is growing slowly, it has now become a ‘one step forward and two steps back’ type of approach.

The steps to de-dollarization are long and hard and without unity from the members, it will remain a distant dream. The US dollar has more benefits than other currencies as it can sustain the harsh yet competitive currency markets.

  • BRICS
  • De-dollarization