“BRICS vs Dollar: Is a New Global Currency Order Coming?”

The debate around the U.S. dollar’s dominance is heating up. As the BRICS bloc (Brazil, Russia, India, China, South Africa and others) expands and promotes alternatives to the dollar, many ask: could a new global currency order emerge?

Source: © Shahriar Shovon 2025

The figure above illustrates the dollar’s declining share in global reserves—from about 73% in 2001 to nearly 58%, declining around ten times faster than over the prior two decades.
It also shows the rising share of other currencies, including yuan, euro and local currencies used in BRICS trade.

Why BRICS Wants a New Currency

Economic Independence: Sanctions on Russia and geopolitical friction encourage BRICS members to reduce dollar exposure and enhance financial sovereignty.
Payment Systems: Initiatives like BRICS Pay aim to support cross-border trade in national currencies, bypassing SWIFT and U.S. dollar-based infrastructure.
Strategic Messaging: Leaders promote the idea of a BRICS currency to deter dollar “weaponization” while admitting it’s more medium‑ to long‑term ambition than immediate action.

Potential Impact and Challenges

What Could a BRICS Currency Mean?

A unified BRICS currency could reduce transaction costs, foster intra-BRICS trade, and marginalize dollar dependence.
It might be backed by a basket of currencies—or even gold—providing perceived stability against inflation and political risk.

Obstacles to Displacement

Dominance of the Dollar Remains Strong: As of 2025, the dollar still makes up 58–62% of global reserves, with the yuan only around 2%.
Institutional and Structural Gaps: BRICS lacks deep capital markets, trusted institutions, and interoperable systems needed for a credible global currency.
Internal Coordination Challenges: Divergent economic systems, political priorities, and sanctions complicate unified monetary policy or shared currency issuance.
Market Skepticism: Brazil’s central bank warns BRICS lacks the asset depth to rival the dollar within a decade—even as trade offsets continue.

Is a New Global Currency Order Likely?

Trends Supporting a Shift

Diversification of forex reserves and bilateral trade in local currencies is rising.
Projects like BIS‑backed mBridge and China-led pilots push alternatives to dollar-based payments. Broader geopolitical shifts and eroding global trust in the U.S. system strengthen de-dollarization momentum.

But the Dollar Still Rules—for Now

Analysts see any real displacement as unlikely in the near term; even former BOJ deputy governor Hiroshi Nakaso sees cracks, but not replacement.
Efforts by Trump and U.S. policymakers to penalize BRICS moves (tariffs, pressure on cross-border usage) signal resistance to change .

While BRICS is systematically pursuing de-dollarization—via national currency trade, payment platforms like BRICS Pay, and digital infrastructure—we are not witnessing an imminent dethronement of the U.S. dollar. The transition to a multipolar currency system is more likely to be gradual, reinforcing regional blocs and increasing diversity in global reserves rather than delivering a definitive new world currency in the near future.

Written by: Mahamuda Priya

Independent Researcher | Blogger | Policy Analyst
📧 mahamudapriya622@gmail.com |

References

Business Insider. (2023). What is de-dollarization? markets.businessinsider.com
InvestingNews. (2024). Is There a Threat to the Dollar From a New BRICS Currency? Investing News Network (INN)+1Mercer Advisors+1
Reuters. (2025). Ex-BOJ deputy chief Nakaso sees 'cracks' in dollar's supremacy. Reuters
Reuters. (2024). Explainer: What is a BRICS currency and is the U.S. dollar in trouble? Reuters
The Guardian. (2025). Trust in the U.S. is eroding... The Guardian
Various reports on BRICS de-dollarization initiatives and economic structure Eurasia ReviewAgWebafripoli.orgfiw.ac.atScienceDirectthink.ing.comresearchgate.net