BRICS Cautious on De-dollarisation, Focus on Payments Over Currency
The BRICS nations have issued a joint statement on de-dollarisation, but its contents are more cautious than expected. Despite some members pushing for a reduction in reliance on the US dollar, the statement emphasizes pragmatic solutions for efficient cross-border payments and voluntary cooperation.
Iranian President Masoud Pezeshkian made a direct case for moving away from the dollar, citing vulnerabilities to political shocks and sanctions. He advocated for expanding the use of national currencies in trade among members and establishing necessary instruments for managing currency risks.
The statement also acknowledged efforts by the BRICS Payment Task Force (BPTF) towards exploring pragmatic solutions for efficient cross-border payment mechanisms. However, replacing the dollar is challenging due to its deep financial markets, global trade role, and members' currency imbalances.