BRICS Nations Take Steady Steps Towards De-Dollarization

The BRICS nations are working on de-dollarization, a move that would reduce transaction costs and break away from dollar hegemony.

However, this process is complex and requires administrative rulebooks to be put in place. The issue was mentioned in the 90th paragraph of the 140-paragraph summit declaration.

The BRICS Payment Task Force (BPTF) has been exploring pragmatic solutions for efficient cross-border payment mechanisms. India has ruled out a BRICS currency and de-dollarization, but instead proposes intra-BRICS trade using local currencies through Central Bank Digital Currency (CBDC).

This move is seen as a way to digitize the economy and reduce reliance on the US dollar. It also aims to create connectivity pathways for Micro, Small and Medium Enterprises (MSMEs) and open up channels of communication for farmers.