- BRICS members are testing multiple measures to cut reliance on the US dollar in trade and reserves.
- The bloc is pursuing local-currency settlements, a Gold-backed mechanism called UNIT, and plans for a shared currency.
- Members aim to reduce US dollar-denominated assets like Treasuries and increase gold holdings.
- Technical alternatives include bypassing SWIFT with BRICS Pay and developing central bank digital currencies (CBDCs) such as the digital yuan.
- Despite these steps, the US dollar remains dominant: about 80% of trade is settled in dollars and roughly 58% of global reserves are dollar-denominated.
The BRICS alliance is experimenting with several pathways to reduce its dependency on the US dollar, seeking to shift trade and reserves away from the greenback rather than immediately replace it. Members are testing local-currency settlements and planning a shared currency while exploring a gold-backed settlement mechanism called UNIT.
The bloc has also taken practical steps to change reserve exposure and payment infrastructure. Some members plan to reduce US dollar-denominated assets like Treasuries and diversify central bank assets with gold. The group is developing payment alternatives, including bypassing SWIFT through BRICS Pay and advancing central bank digital currencies (CBDCs) such as the digital yuan.
Plans also include rewriting trade deals to use local currencies and preparing a BRICS currency for trade. These measures are intended as gradual steps to lower dollar use in trade and settlements rather than an immediate substitution.
At the same time, the US dollar retains major structural advantages. About 80% of global trade is settled in dollars and roughly 58% of world reserves remain dollar-denominated. The dollar’s liquidity, broad trust among traders, and resilience through market shocks keep it firmly entrenched in the global system.
The BRICS efforts create a long-term counterbalance and testing ground for alternatives, but the greenback continues to dominate current international trade and reserves.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Betterment warns: disregard unauthorized crypto promotion now
- 34 arrested in Spain in Black Axe transnational operation EU
- Bitdeer Sells BTC, Faces SEAL04 Chip Class-Action Suit Today
- MuddyWater deploys RustyWater Rust RAT in Middle East attack
- BRICS Gold-Backed Unit Pilot Launches as Dollar Alternatives
