BRICS Payment Cooperation Gains Momentum Amid Dollar Dominance Concerns

BRICS countries are strengthening their payment and currency cooperation to boost financial autonomy and resilience amid growing concerns over the dollar-centric international monetary system, experts said.

Bilateral payment arrangements, expanding local currency settlements, and broadening access to infrastructure such as the Cross-Border Interbank Payment System (CIPS) and the multilateral central bank digital currency (CBDC) platform mBridge are key areas of focus for BRICS members.

Yang Tao, a council member of the National Institution for Finance & Development, emphasized that closer payment cooperation could reduce BRICS members' reliance on the US dollar and Western-dominated financial infrastructure while strengthening their financial autonomy.

Liu Xiaochun, vice-president of the Shanghai Finance Institute, noted that cross-border dollar payments and clearing routed through US-based clearing banks fall within the reach of US regulatory oversight and sanctions enforcement. He highlighted the importance of access to financial messaging data and the need for BRICS countries to consider developing independent financial messaging channels.

Gradual progress is expected as monetary sovereignty remains a central consideration in coordinating rules across economies. A common BRICS currency is seen as impractical under current conditions, while expanding CIPS' international appeal through equity participation by foreign banks could strengthen its global use.