BRICS De-Dollarization: Why Trump Can’t Stop the Alliance’s Financial Shift

With Donald Trump returning to the political stage, some speculate that U.S. leadership could derail the BRICS alliance’s de-dollarization agenda. But experts argue otherwise: BRICS remains steadfast in its commitment to trading in local currencies, a strategy that shows no signs of slowing—even with Trump back in the Oval Office.

Earlier this month, Russian President Vladimir Putin hinted at a potential pause in BRICS' de-dollarization efforts. Yet economists like Lauren Johnston disagree, pointing to strong political and financial incentives that bind the bloc to its strategy of local currency trade. Johnston emphasizes that using local currencies not only reduces transaction costs but also diminishes reliance on foreign currencies—a key driver for the bloc amid a changing global financial order.

Why De-Dollarization Still Matters

BRICS' focus on ditching the U.S. dollar has been driven largely by necessity. Western sanctions against Russia underscored the risks of dollar dependence, compelling the bloc to seek alternatives. Over the past two years, this pivot has proven both feasible and beneficial, signaling a deeper commitment to challenging the greenback’s dominance.

While Trump has repeatedly championed the dollar’s global role and hinted at easing sanctions to maintain its supremacy, such moves may not sway the alliance. The economic benefits of local currency trade far outweigh the allure of returning to dollar-based systems, particularly for nations intent on fortifying their sovereignty and economic stability.

Lauren Johnston underscores this point, explaining that BRICS nations are motivated by long-term goals. “There are economic and political reasons to use local currencies,” she said in a recent interview. “This strategy enhances their economic independence and reduces exposure to external financial shocks.”

A Shared Payment System on the Horizon?

For years, BRICS has toyed with the idea of a unified payment system to facilitate intra-bloc trade. Though progress remains slow, the mere prospect underscores the alliance’s commitment to reducing its reliance on Western financial systems. Until then, the emphasis on local currency trade continues, cementing BRICS as a disruptive force in the global financial order.

Despite Trump’s efforts to restore dollar dominance, BRICS appears more resolute than ever. The alliance’s pursuit of de-dollarization signals a new era of financial independence that Washington may struggle to counter. For those monitoring these developments, it’s clear: the traditional banking system is under threat, and the time to act is now.

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