BRICS 2025 marks a turning point in the global economy: during the summit held in Rio de Janeiro, President Vladimir Putin announced that 90% of the transactions between the member countries of the alliance are settled in local currencies. A result that reflects a radical change in trade flows and international financial paradigms.
Local currencies increasingly central in trade among BRICS countries
Putin has declared that the growth of transactions in local currencies represents a solid and unstoppable trend within the alliance. In particular, the proof of this statement is found in the data related to 2024: the ruble and the currencies of the so-called 'friendly countries' accounted for 90% of the settlements between Russia and the other BRICS states.
This revolution in payment systems drastically reduces the centrality of the US dollar in the bloc’s international operations, laying the foundations for greater economic and financial independence from the West.
The role of Russia and China in promoting national currencies
In recent years, Russia has taken the lead in the collective effort to promote the use of national currencies within the BRICS space. This process has been accompanied by active involvement from China, engaged in the 'de-dollarization' strategy on a global level.
Not only has China found support in Asia, but it has also expanded its influence in Africa and Latin America, encouraging many countries to choose local currencies for settling trade payments. As a result, the dollar is progressively marginalized in economic relations among the BRICS nations.
Strategic objectives of the transition to local currencies
The choice to promote the use of local currencies in payments between member countries aligns with specific geopolitical and financial strategies. Putin highlighted that the alliance aims to build an autonomous and competitive system compared to the circuits dominated by the United States.
Competition with the West: The BRICS position themselves as the only alliance intent on openly challenging the Western financial primacy.
Independence: Choosing local currencies frees partners from the risk of sanctions and fluctuations imposed by the dollar.
Efficiency: Fine-tuning fast payment infrastructures, effective logistics, insurance, and advanced financial services reduces costs and improves the speed of operations.
This financial revolution, however, also involves the need to tackle technical and organizational challenges to ensure an agile and secure system.
Infrastructure Modernization and the Future of BRICS Payments
During the Rio de Janeiro summit, the participants discussed how to make payments in local currencies even faster and more efficient. The goal is to optimize every phase of international transactions, from logistical aspects to insurance coverage, up to new generation banking and financial services.
According to President Putin, technological evolutions are indispensable to allow:
Simplify the methods of transferring funds between member countries
Security of transactions through high standards
Interoperability between different national payment systems
These themes represent the heart of the debate on financial autonomy and ensure that the BRICS system can support increasingly substantial and sophisticated trade flows within the alliance.
The global significance of an advanced de-dollarization
The advance of local currencies among the BRICS represents one of the most significant developments in the international finance scenario. By reducing reliance on the dollar in trade settlements, the bloc aims both to reduce its vulnerability to market fluctuations and sanctions, and to gain greater negotiating power compared to the United States.
The impact goes far beyond the geographical boundaries of the member countries: the expansion of non-dollarized transactions influences the very architecture of global markets and could produce ripple effects on the entire international payments system.
The protagonism of the ruble and emerging economies
In the new dynamic, the ruble assumes an unprecedented centrality in trade among BRICS countries, accompanied by the currencies of the main emerging economies. This grants Moscow a director’s role in the transition towards exchange systems no longer dependent on the dollar.
Furthermore, the choice to adopt different currencies from the US one promotes a more balanced distribution of economic power and fuels the development of new financial instruments within the bloc.
Perspectives and the invitation to innovation in the BRICS system
The scenario outlined by the Rio de Janeiro summit indicates that the BRICS project is moving towards increasing financial independence. This strategy is not without complexity, but it offers each member country new opportunities for innovation and development in the payment systems sector.
The increase in confidence in their own local currencies stimulates cooperation in technological, logistical, and insurance fields, catalyzing investments and know-how useful for strengthening the economies of the bloc.
The BRICS bet for an independent payment system promises to accelerate the growth and resilience of the group over time. Anyone looking at the future of emerging markets should closely observe these developments and assess both the risks and opportunities arising from the progressive de-dollarization of global exchanges.