BRICS Cautiously Pursues De-Dollarization Amid Global Economic Pressures

BRICS nations met in Mumbai to discuss de-dollarization and payment systems. The bloc has long been suspected of planning to challenge the US dollar's dominance, but a joint statement released after the meeting revealed a more cautious approach.

The document emphasizes interoperable payment systems, settlements in local currencies, and voluntary collaboration among members who 'respect national priorities.' It also recognizes the work of the BRICS Payment Task Force (BPTF) in examining practical options for efficient cross-border payment systems.

Russian President Vladimir Putin argued that sanctions are being used to restrict international trade and urged the creation of a new, sustainable platform for global growth. Iranian President Masoud Pezeshkian also pushed for de-dollarization, stating that BRICS should build a more robust system for trade, investment, and financing using their national currencies.

The joint statement calls on the New Development Bank to increase local-currency lending and broaden its range of funding sources. It also backs the BRICS Multilateral Guarantees initiative, designed to enhance project creditworthiness and reduce financing costs.