BRICS Currency Explained: What is de dollarization

The global economy has long operated under the hegemony of the US dollar and other major Western currencies. This dominance might soon be contested if the BRICS nations—Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, UAE and Saudi Arabia—have their way. The proposition of a BRICS currency signals a desire for a seismic shift in economic power dynamics, challenging the traditional reliance on Western financial systems. At the heart of this movement is a shared motivation among the BRICS nations to insulate their economies from the fluctuations of the dollar exchange rate and to assert greater economic independence what is also known as “de-dollarization”. This call for change was echoed by Brazil’s President at the last BRICS summit in Johannesburg, where he advocated for a common currency for trade and investment within the bloc, aiming to “increase our payment options and reduce our vulnerabilities,“ as reported by Reuters. With the dollar accounting for a significant portion of global foreign exchange reserves and being the principal currency in international transactions, any shift away from it would have considerable implications. The BRICS nations, particularly Russia and China, have openly criticized the dollar’s dominance and have taken steps toward using their national currencies for cross-border transactions. In this video, we will explore everything about the BRICS currency, including its current status and future prospects, Currency Swap Agreements and overall impact of the currency on global economy to geopolitical perspectives.