Yes, BRICS Nations Are Actively Working to Reduce Dollar Dependence — Here's What's Actually Happening
“BRICS nations are trying to reduce their dependence on the dollar”
The argument in brief
The claim that BRICS nations are trying to reduce their reliance on the US dollar is true and well-documented. Leaders formally committed to it in the official 2023 Johannesburg Declaration, and China, Russia, and India have all taken concrete steps like settling trade in local currencies. That said, the dollar still dominates global finance — de-dollarization is a real and ongoing effort, not a done deal.
Data: IMF COFER Database, 2023
Why it spread
This claim resonates deeply because it touches on anxieties about shifting global power. People worried about US economic decline see it as a warning sign, while those skeptical of Western dominance see it as welcome news. Both groups have reason to amplify it, which means it often gets overstated in both directions — either as proof of imminent dollar collapse or dismissed entirely as propaganda.
The claim is true. BRICS nations — Brazil, Russia, India, China, and South Africa — have openly and officially stated their intention to reduce dependence on the US dollar, and they have taken real steps to back that up. This is not speculation or fringe commentary; it is stated policy.
The clearest proof is the official BRICS 2023 Johannesburg Declaration, which explicitly called for expanding the use of local currencies in trade and financial transactions among members and their partners. Reuters reported that the summit in Johannesburg put local-currency trade at the center of discussions. This is a formal, government-level commitment, not just rhetoric.
Beyond declarations, concrete action has followed. The Council on Foreign Relations notes that Russia and China have struck bilateral trade deals in non-dollar currencies, and the Atlantic Council's Dollar Dominance Monitor confirms that China-Russia trade now runs largely in yuan and rubles. India has settled some oil purchases in rupees, as reported by the Financial Times. Meanwhile, the IMF documented that the dollar's share of global reserves has slipped from about 71% in 1999 to roughly 58% by 2022, partly driven by diversification among emerging market central banks including BRICS members.
To be fair to the full picture: the dollar is not being dethroned anytime soon. The Financial Times notes that full de-dollarization remains a distant goal. No rival currency — not the yuan, not a proposed BRICS currency — currently has the depth, liquidity, or global trust to replace the dollar at scale. What is happening is a gradual, deliberate shift at the edges, not a collapse of dollar dominance.
This story spreads in exaggerated form because it gets pulled in two directions. Some amplify it as proof that dollar collapse is imminent; others dismiss the whole thing as fantasy. The truth sits in the middle: the effort is real, the progress is modest, and the dollar remains dominant — for now. When you see headlines about BRICS "killing the dollar," look for what specific steps have actually been taken versus what has merely been proposed.
Sources
- Reuters
At the 2023 BRICS summit in Johannesburg, leaders explicitly discussed expanding trade in local currencies and reducing reliance on the US dollar in international transactions.
- IMF Working Paper / IMF Blog
The IMF documented a gradual decline in the dollar's share of global reserves from about 71% in 1999 to around 58% by 2022, partly driven by diversification efforts by emerging market central banks including BRICS members.
- Council on Foreign Relations
CFR notes that BRICS nations, particularly Russia and China, have actively pursued bilateral trade agreements in non-dollar currencies and have increased gold reserves as part of de-dollarization strategies.
- Atlantic Council Dollar Dominance Monitor
The Atlantic Council tracks de-dollarization efforts and confirms that China and Russia have significantly reduced dollar-denominated trade, with China-Russia bilateral trade now conducted largely in yuan and rubles.
- BRICS 2023 Johannesburg Declaration
The official BRICS summit declaration explicitly called for strengthening the use of local currencies in international trade and financial transactions among BRICS members and their trading partners.
- Financial Times
The FT reported that while full de-dollarization remains a distant goal, concrete steps have been taken including China's yuan being used in more commodity trades and India settling some oil purchases in rupees.
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