BRICS Accelerates Transition to De-dollarization: New Trade Strategy Between Countries

The de-dollarization initiative is becoming one of the top priorities for developing economies. Brazilian President Luiz Lula da Silva advocates for radical changes in the structure of international trade within BRICS, proposing that member countries switch to transactions in their national currencies instead of the US dollar.

Strategic Need for De-dollarization

The main motivation behind this move is BRICS’s desire to reduce financial pressure and avoid sanctions, which are often used by developed countries as a political tool. Lula emphasizes the critical importance of developing practical mechanisms that enable finance ministers and central banks to coordinate mutual settlement systems. De-dollarization involves creating alternative trade channels that provide greater economic independence for developing nations.

Mechanisms for Implementing International Cooperation

To realize the de-dollarization strategy, deep collaboration among BRICS financial institutions is required. Central banks need to develop unified exchange and interaction protocols, which will simplify cross-border payments and trade operations. This initiative is especially relevant for countries under financial sanctions and restrictions, traditionally enforced through the US dollar.

Expected Obstacles and International Reactions

Despite the ambitious plans, the de-dollarization proposal will face significant opposition from the United States and Western partners. These countries have a clear interest in maintaining the dollar as the global reserve currency, as it grants them substantial economic advantages. The upcoming BRICS summit in India will be a key event for discussing practical steps to implement de-dollarization mechanisms and for uniting member countries’ positions on this critically important issue.