BRICS ‘Unit’ Challenges Dollar Dominance

Source: Newsmax | Original Published At: 2025-12-17 17:56:29 UTC

Key Points

• BRICS introduced a pilot digital trade instrument ('The Unit') backed by 40% physical gold and 60% BRICS currencies to facilitate cross-border transactions.
• The initiative aims to counter Western financial system dominance, sanctions risks, and U.S. monetary policy dependencies through de-dollarization.
• The Unit's pilot involved 100 units pegged to 1 gram of gold each, with daily adjustments based on reserve basket values.
• BRICS nations are expanding local currency trade (up 20% YoY) and alternative financial infrastructure including the New Development Bank.
• U.S. political reaction includes Trump's threat of 100% tariffs against BRICS currency development, while Putin emphasizes countering dollar weaponization rather than full replacement.