X-Plane: Can BRICS End the Dollar’s Dominance? Understand the International Legal Aspects and India’s Role

Source: ABP News | Original Published At: 2026-08-13 02:36:18 UTC

Key Points

• BRICS member countries reaffirmed commitments at the 2024 and 2025 BRICS summits to increase transactions in local currencies, strengthen alternative payment systems, and reduce dependence on the US dollar in international trade.
• The international monetary legal framework, primarily the IMF Articles of Agreement, does not require countries to conduct international trade exclusively in US dollars.
• The US dollar's global dominance is attributed to economic and institutional factors, including the strength of the US economy, deep and liquid financial markets, and global confidence in dollar-denominated assets.
• IMF Article IV obligations focus on maintaining exchange-rate stability, cooperating with the IMF and other members, avoiding artificial currency manipulation, and preventing misuse of exchange rates for unfair competitive advantage.
• Countries may trade in other currencies by mutual consent through currency swap arrangements, local-currency trade agreements, and alternative payment systems.
• India supports financial diversification rather than abandoning the dollar, promoting international trade in the Indian rupee, strengthening digital and cross-border payment systems, and seeking reforms at the IMF and World Bank.