- Rising resistance within BRICS follows India and China’s refusal to adopt a single settlement currency.
- India says abandoning the dollar is not part of its economic policy, while China pushes its own currency internationalization.
- Differences among members have stalled collective de-dollarization efforts and kept trade largely bilateral and in local currencies.
- At least 80 central banks hold about $274 billion in related reserves, and the Cross-Border Interbank Payment System lists 184 direct participants in 167 countries.
- The July 2025 summit issued a 126-point declaration that omitted any BRICS currency or de-dollarization program, underscoring persistent divisions.
The BRICS grouping faces growing resistance to a shared settlement currency after key members declined to pursue a common unit during 2024–2025 meetings, raising questions about the bloc’s ability to coordinate on de-dollarization. India and China took different paths: New Delhi rejected a shared currency on stability grounds, while Beijing continued to promote its own currency abroad. The divergence has limited collective action on replacing the U.S. dollar for trade settlements.
At the IT-BT Round Table 2025, Piyush Goyal made India’s position explicit: “Imagine us having a currency shared with China. We have no plans. It is impossible to think of a BRICS currency.” India and other officials, including Jaishankar Subramanian, have said targeting the dollar is not part of their economic or strategic policy and that stability and existing Western trade ties guide their stance.
China has pursued currency internationalization independently since 2008 through swap lines and payment systems. The Cross-Border Interbank Payment System reports 184 direct participants across 167 countries, and at least 80 central banks hold about $274 billion in related reserves, reflecting selective uptake rather than a unified BRICS mechanism.
Observers within the bloc note structural obstacles to a single currency, including the absence of a common market or trade policy. Chintamani Mahapatra summarized the challenge by contrasting BRICS with the European Union’s integrated institutions.
Russian calls for coordinated alternatives have not gained full support. Vladimir Putin acknowledged public debate about a single currency but said it was premature and not an immediate goal. The July 2025 BRICS summit produced a 126-point declaration that did not endorse collective de-dollarization, leaving member states to rely mainly on bilateral and local-currency trade arrangements.
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