BRICS Local-Currency Trade Settlement Plan Is a Push Towards De-Dollarisation

Source: Outlook Business | Original Published At: 2026-09-11 16:23:21 UTC

Key Points

• BRICS finance ministers and central bank governors said in a September 10 joint statement that members are examining interoperability of payment and messaging systems and promoting local-currency trade settlements and investment.
• The statement did not explicitly call for de-dollarisation or a common BRICS currency, but the measures could reduce US dollar use in intra-BRICS trade and financing.
• A common BRICS currency remains unlikely because it would require deeper monetary and financial integration, including a central monetary authority, common fiscal rules and shared monetary policy.
• Russia said 90% of transactions between Russia and BRICS nations are conducted in national currencies and rejected the idea that it is pursuing de-dollarisation.
• For India, rupee-based settlement could support exports and reduce exposure to dollar-related sanctions, but persistent trade imbalances could cause local-currency balances to pile up in deficit countries.
• India’s trade with BRICS rose from $203.1 billion in FY2021 to $417.5 billion in FY2026, while the deficit widened from $74.5 billion to $226.1 billion, according to GTRI.
• India favors linking central bank digital currencies and using national currencies rather than supporting a unified bloc-wide payments network that could be perceived as anti-dollar.