BRICS De-Dollarization Efforts Stall Amid Internal Conflicts

The BRICS countries have been discussing de-dollarization for years, but experts say it's mostly talk and not much action. The bloc aims to reduce its reliance on the US dollar due to geopolitical tensions, economic sanctions, and US tariff policy. However, they face significant hurdles in achieving this goal.

Data from the Bank of International Settlements shows that the US dollar makes up 89% of the forex market as of April, while the euro and yen make up 29% and 17%, respectively. South African President Cyril Ramaphosa emphasized the need for greater use of local currencies at the BRICS Summit.

Russia and China have accelerated their trade in rubles and yuan, but this shift has been driven by US sanctions rather than coordinated BRICS policy. Experts point to a lack of financial and macroeconomic integration among BRICS nations as a major obstacle. Jayant Krishna, senior fellow at the Center for Strategic and International Studies, said that 'the BRICS lack the unified institutional, financial, and macroeconomic infrastructure needed to substitute the inherent liquidity and trust' of the dollar.

Competing interests among BRICS nations, particularly between China and India, also make de-dollarization difficult. China-India competition is seen as a major brake on cohesion across the bloc, with both countries wanting greater strategic autonomy from Washington but remaining direct competitors in various areas.