BRICS Omit US Dollar from New Delhi Declaration

The BRICS group of nations met in New Delhi and adopted the New Delhi Declaration, but it did not mention the US dollar. The omission is significant because the dollar was noticeably absent from discussions about cross-border payments.

Leaders of the 11-member grouping acknowledged the work of the BRICS Payment Task Force, which aims to create a system for fast, low-cost, and efficient cross-border transactions. However, they stopped short of creating a named rival to SWIFT or adopting China's Cross-Border Interbank Payment System (CIPS) as the club's primary payment system.

The declaration does target sanctions more than reserve status, condemning 'unilateral coercive measures' that distort trade and lack UN Security Council authorization. It also voices concerns over unilateral tariffs and non-tariff measures that affect global trade.

Despite the BRICS group's efforts to build an exit from relying on the dollar for cross-border transactions, the US dollar remains dominant in international reserves and trade finance. The yuan's share of SWIFT payments is still around 3%, while the dollar accounts for over 51% of SWIFT payment value.