BRICS De-Dollarization Bid Fails to Dent Dollar's Dominance

The BRICS nations have adopted the New Delhi Declaration, which focuses on creating payment infrastructure to facilitate local currency use. This move has led to a counterintuitive outcome: despite de-dollarization efforts, the US dollar has seen an increase in value.

The declaration does not aim to create a common currency for the BRICS nations, but rather to reduce reliance on the dollar for transactions and reserves. However, the dollar remains dominant globally, with only gradual declines in its share over decades.

Analysts point out that experiments like India-Russia rupee settlements reveal structural limits to de-dollarization efforts. Imbalanced trade and non-convertible currencies restrict broader adoption of alternative currencies.