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In recent years, BRICS members have steadily advanced efforts to reduce their dependence on the U.S. dollar in cross-border trade. The momentum has accelerated in 2025, with new developments in digital payment systems, increased use of local currencies in settlements, and enhanced lending practices by the New Development Bank (NDB). Together, these initiatives signal not only a financial diversification strategy but also a reshaping of global trade architecture.

Local Currency Transactions: From Concept to Practice

The most visible progress is happening in the sphere of retail and small business payments. In August 2025, China and Indonesia launched cross-border QR code payment trials that allow transactions directly in local currencies without dollar conversion. This was made possible through Indonesia’s QRIS system, which became operational in China on August 17, enabling smartphone-based payments across borders with unprecedented ease. By bypassing dollar intermediaries, such platforms reduce transaction costs, cut currency conversion risks, and improve accessibility for smaller businesses and consumers who are often left out of traditional banking networks.

For countries like Indonesia, whose trade with China is growing rapidly, this is more than just a payment innovation—it is a tool for improving trade inclusivity. It aligns with the broader ASEAN vision of regional financial integration and fits into China’s ambition of promoting the yuan as a viable alternative in international commerce.

Russia’s Push for De-Dollarization

Parallel to these retail-level innovations, major policy shifts are visible at the intergovernmental and corporate trade level. At the July 2025 BRICS summit in Rio de Janeiro, Russian President Vladimir Putin disclosed that 90% of transactions between Russia and other BRICS nations are now settled in national currencies. This is a dramatic reversal from the historic reliance on the dollar in energy and commodity trade. For Moscow, facing Western sanctions, the shift is both a necessity and a strategy to strengthen alliances with “friendly” economies.

Such a high proportion of local currency trade among BRICS members suggests that de-dollarization is no longer aspirational rhetoric. Instead, it has become an operational reality—driven by geopolitical tensions, sanctions pressure, and the search for financial sovereignty.

The Role of the New Development Bank

Institutional support has also deepened. The New Development Bank, under the leadership of former Brazilian President Dilma Rousseff, has expanded local currency lending to cover 25% of its portfolio, with a target of reaching 30% by 2026. This gradual but steady increase reflects a conscious effort to reduce reliance on the dollar in development financing.

Local currency lending carries both benefits and risks. On one hand, it shields borrowers from dollar volatility, stabilizing repayment terms and encouraging sustainable borrowing. On the other, it exposes the NDB to currency mismatches and exchange-rate risks that are not always easy to hedge. Nonetheless, the political signaling effect is significant: BRICS nations are prepared to design parallel financial frameworks to support their long-term economic partnerships.

Critical Implications and Challenges

While these efforts highlight real progress, critical questions remain. First, can QR-based cross-border payment systems scale beyond pilot projects to cover larger trade flows? Retail transactions are important, but the real test lies in integrating these systems into supply chain payments, bulk commodity trade, and high-value cross-border contracts.

Second, the geopolitical dimension cannot be ignored. De-dollarization is not purely economic; it is also a tool of strategic autonomy. However, this shift will likely invite countermeasures from established financial powers, including stricter sanctions frameworks and regulatory hurdles for non-dollar trade systems.

Third, the varying levels of financial infrastructure within BRICS pose challenges to harmonization. While China has advanced digital ecosystems, other members face gaps in technology adoption, regulatory alignment, and trust-building measures necessary for seamless implementation.

A Gradual but Firm March

The developments in 2025 suggest that BRICS is not seeking to replace the dollar overnight but is building alternatives layer by layer—through payment innovations, currency settlement agreements, and institutional lending. Each step may seem small in isolation, but together they indicate a clear trajectory: a gradual erosion of dollar dominance in favor of a more multipolar financial order.

For businesses, financial institutions, and policymakers, the message is clear. The future of global trade will not be dollar-exclusive, and those who adapt early to local currency mechanisms will be better positioned in a reshaped international economy.

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