BRICS Bloc’s Credibility Crisis: A Double Game

BRICS bloc champions de-dollarization yet relies on dollar stability politically.

  • The BRICS bloc publicly advocates for de-dollarization and a “multipolar financial order” while privately acknowledging the U.S. dollar’s role in global stability.
  • Political solidarity within BRICS is often sacrificed, as demonstrated by an 11-day delayed and ambiguous response when member state Iran was attacked in 2025.
  • Despite internal contradictions, the bloc’s aggressive Gold accumulation is a concrete financial strategy, with members holding over 21% of global central bank gold reserves.

The BRICS economic alliance is caught in a stark contradiction between its bold financial rhetoric and cautious political actions, according to analysis of its recent summits and crisis responses. Member states champion de-dollarization and a new world order yet consistently soften their stance under pressure from Western powers like the United States. Consequently, the bloc’s credibility is repeatedly undermined by this structural inconsistency.

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At the 2025 Rio Summit, the joint declaration carefully avoided naming the U.S. despite citing “serious concerns” about tariffs. This hedging prompted a sharp warning from US President Donald Trump, who threatened a 10% tariff on any country aligning with “anti-American policies.” Meanwhile, India‘s External Affairs Minister S. Jaishankar explicitly stated, “The dollar as the reserve currency is the source of global economic stability.”

The bloc’s political fragility was further exposed during the BRICS Iran crisis in mid-2025. BRICS required eleven days to issue a collective statement that named no aggressor after Iran was attacked. Analyst Priyal Singh noted this conflict would have “significant repercussions on how the group is perceived.”

Financially, however, BRICS strategy shows measurable progress. The bloc’s ten members hold over 6,000 tons of gold, roughly 21% of global central bank reserves. This accumulation supports a tangible shift, as the dollar’s share of global reserves fell from 58.2% in 2024 to approximately 56.9% in early 2026. Iran’s parliamentary speaker even emphasized the need for digital currency trade at a blockchain conference.

Ultimately, BRICS advances its financial agenda through gold and digital tools while trading away political solidarity. As researcher Patrick Bond observed, no member’s ruling class would aid Iran when their interests are tied to Israel’s prosperity.

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