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De-dollarization and BRICS alternatives
· Concept
Experts disagreeEconomists or investors genuinely disagree.
Efforts, led by China, Russia and some BRICS members, to rely less on the dollar for trade, reserves and payments.
See it on the Money & Finance map →How it works
Tools include settling trade in local currencies, building non-dollar payment networks such as China's CIPS, and buying gold. The dollar's share of global reserves fell from about 71% in 2000 to about 58% by 2024 (IMF), mostly toward smaller currencies like the Canadian and Australian dollars, not the yuan. BRICS (Brazil, Russia, India, China, South Africa, plus new members since 2024) has discussed but not created a common currency; India has opposed one.
Why it matters
If it advanced far, US borrowing costs could rise and sanctions could weaken. So far the change is slow and partial.
Facts, rules and data
IMF reserve-composition (COFER) data, the BIS currency-trading survey, SWIFT's currency tracker and World Gold Council data on central-bank gold buying.
Debates and risks
Experts disagree on whether this is a real long-term shift or mostly talk; no rival yet matches the dollar's deep, open markets.
Inside this (2)
Connections (9)
▸Gold and precious metals as investments is bought by central banks amid De-dollarization and BRICS alternativesFact, law or data
The connection
Gold is the one reserve asset no foreign government can freeze if a country stores it at home. After Russia's reserves were frozen in 2022, central banks bought over 1,000 tonnes of gold a year in 2022, 2023 and 2024, about twice the prior decade's pace. By 2024 gold had passed the euro as the second-largest reserve asset by value.
When and why
Global, 2022–25; the biggest buyers included Poland, China, Turkey and India, according to World Gold Council data.
How we know
World Gold Council and IMF data on official holdings; the Council's central-bank surveys cite sanctions risk; the ECB reported gold passing the euro in 2025.
Debates and risks
Whether this signals a lasting move away from dollars or simple diversification; China's reported purchases may understate its true buying.
▸Financial sanctions and 'weaponizing' the dollar accelerate talk of De-dollarization and BRICS alternativesExperts disagree
The connection
When the dollar system is used to punish, potential targets see risk in holding dollars. The 2022 freeze of about $300 billion of Russia's central-bank reserves was a turning point: assets assumed safe became unusable overnight. Russia, China and others expanded local-currency trade, alternative payment systems and gold buying in response.
When and why
After Russia's February 2022 invasion of Ukraine; Russia–China trade shifted mostly to rubles and yuan by 2023–24.
How solid is the link?
Russian officials have said over 90% of Russia–China trade settles in rubles and yuan; central-bank surveys cite sanctions as a reason to buy gold.
Debates and risks
Whether talk becomes action: the dollar's share of currency trading and trade invoicing has barely changed since 2022.
▸De-dollarization and BRICS alternatives would erode The US dollar as the world's reserve currencyExperts disagree
The connection
Dollar dominance rests on network effects: everyone uses dollars because everyone else does. De-dollarization would chip at that through reserve diversification, local-currency trade and non-dollar payment systems. Network effects make dominance sticky, but a shift could speed up once enough users move. So far the erosion is gradual, mostly toward smaller currencies and gold rather than one rival.
When and why
Global and gradual since about 2000; the debate intensified after the 2022 sanctions on Russia and as BRICS expanded in 2024.
How solid is the link?
IMF COFER reserve data; the BIS survey shows the dollar on one side of about 89% of currency trades in both 2022 and 2025.
Debates and risks
A roughly 10% dollar slide in the first half of 2025, its worst start to a year since 1973, revived the debate; no rival yet offers comparable depth.
▸De-dollarization and BRICS alternatives promotes wider use of China's yuan (renminbi)Experts disagree
The connection
China stands to gain most from any shift. It promotes yuan pricing for oil and commodities, has currency swap lines with about 40 central banks, and runs CIPS, its own cross-border payment system. Yet capital controls limit the yuan's appeal: its share of global reserves is only about 2%, below its 2022 peak near 2.8%.
When and why
The push dates from 2009, when China began yuan trade-settlement pilots; CIPS launched in 2015, and the yuan joined the IMF's SDR basket in 2016.
How solid is the link?
IMF COFER reserve data and SWIFT's RMB Tracker, which ranks the yuan around fourth to sixth in global payments.
Debates and risks
Most economists doubt the yuan can become a major reserve currency without free capital flows and courts independent of the Communist Party.
▸CIPS: China's cross-border yuan payment system (2015) is core plumbing for De-dollarization and BRICS alternativesMainstream view
The connection
Moving away from the dollar takes plumbing as well as politics. CIPS lets banks abroad pay and receive yuan directly with China, for trade with Russia, Iran and others, without touching US correspondent banks. It is the backbone of yuan settlement plans, from Russian oil deals to BRICS payment links.
When and why
Shanghai, since 2015, with participants in 124 countries by the end of 2025.
How solid is the link?
CIPS volumes, up 43% in 2024, and SWIFT's RMB Tracker show growing yuan use, though still far below dollar levels.
Debates and risks
Whether growth reflects lasting demand or mainly sanctioned trade with nowhere else to go; 2025 volume grew only about 3%.
▸The false 2024 claim that the petrodollar deal 'expired' is a staple of hype about De-dollarization and BRICS alternativesFact, law or data
The connection
Stories of a dollar collapse feed on dramatic turning points. The false expiry claim was shared widely as proof that Saudi Arabia was leaving the dollar, alongside rumors of an imminent BRICS currency. It shows how real but slow trends get exaggerated.
When and why
June 2024, on social media and some financial and crypto websites.
How we know
Fact-checks at the time, and continued dollar pricing of Saudi crude afterward.
Debates and risks
How much such hype affects real decisions by investors or governments.
▸The petroyuan: pricing and paying for oil in yuan is a pillar of De-dollarization and BRICS alternativesExperts disagree
The connection
Oil is the world's most traded commodity, so moving its payments off the dollar would be a big step. The petroyuan is the leading example of de-dollarization in practice; supporters see proof the shift is real, while skeptics note it depends on sanctioned sellers.
When and why
Promoted by China since 2018 and by some BRICS partners since 2022.
How solid is the link?
Russian and Chinese statements on yuan settlement, with limited independent data.
Debates and risks
Whether exporters not under sanctions, such as Saudi Arabia or the UAE, will ever sell much oil for yuan.
▸BRICS payment plans: BRICS Pay and linked national systems is the BRICS route to De-dollarization and BRICS alternativesExperts disagree
The connection
Rather than a common currency, which India and others oppose, BRICS is pursuing linked national payment systems so members can trade in their own currencies. Supporters call it the pragmatic route to less dollar use; skeptics note that little has actually been built.
When and why
Kazan, October 2024; Rio de Janeiro, July 2025; New Delhi, September 2026.
How solid is the link?
Summit declarations commit to further work, not deadlines; no BRICS-wide network operates yet.
Debates and risks
Whether members' differing interests, especially India's and China's, allow a working system.
▸China's shrinking Treasury pile: real selling or hidden in custody? is cited as evidence of De-dollarization and BRICS alternativesExperts disagree
The connection
Proponents note China's recorded Treasury holdings have halved since 2013 while its central bank bought gold, especially after Russia's reserves were frozen in 2022. Skeptics reply that total Chinese reserves are steady near $3.3 trillion, so dollar assets may simply have moved to custodians, agency bonds or state banks.
When and why
Debated since about 2016; China's central bank has bought gold in most months since November 2022.
How solid is the link?
TIC data show the decline and SAFE data show steady reserves; analysts like Brad Setser argue much is hidden, not sold.
Debates and risks
Without China publishing its reserve mix, neither side can prove its case.