President Donald Trump’s economic pressure on BRICS countries may be encouraging an unexpected response: a stronger push to reduce dependence on the US dollar in international trade.
As Washington uses tariffs and financial sanctions to advance its economic and political objectives, some BRICS members are exploring alternative ways to settle cross-border transactions. The goal is not necessarily to replace the dollar entirely, but to give governments and businesses more options when conducting international trade.
South Africa’s High Commissioner to India, Anil Sooklal, has criticised what he sees as Washington’s growing anxiety over efforts to diversify global financial arrangements, describing the attitude as “dollar phobia.”
BRICS Pushes for Alternative Payment Systems
BRICS, a grouping that includes major emerging economies, has increasingly discussed ways to make international payments less dependent on Western financial infrastructure.
Recent diplomatic discussions, including the September 2026 New Delhi Declaration referenced in the debate, have highlighted interest in financial cooperation and alternative settlement arrangements.
Indonesia has also explored local-currency settlement mechanisms with international partners, reflecting a broader interest in reducing the need to convert every transaction through the US dollar.
Such arrangements can allow participating countries to trade using their own currencies, potentially lowering conversion costs and reducing exposure to fluctuations in the dollar.
However, developing reliable alternatives requires cooperation between central banks, commercial banks and financial institutions. Payment systems must also be secure, efficient and widely accepted.
Why India Matters to the BRICS Strategy
India occupies an important position in the debate because of its economic size, extensive international trade and relationships with both Western economies and other BRICS members.
New Delhi has incentives to diversify its financial options while maintaining access to established global markets. Its participation could influence how quickly alternative payment arrangements develop.
Nevertheless, BRICS members do not share identical economic interests or monetary priorities. Differences in trade patterns, financial regulations and geopolitical relationships could complicate efforts to establish a unified system.
As a result, cooperation on payment mechanisms may advance more easily than agreement on a common currency or a coordinated monetary policy.
Can BRICS Challenge the Dollar’s Dominance?
The US dollar remains the leading international currency, supported by deep financial markets, widespread use in global trade and its role in international reserves.
Replacing that position would require more than political declarations. Alternative currencies and payment networks would need to offer comparable liquidity, stability, accessibility and confidence among international investors.
Still, reducing reliance on the dollar in selected transactions could gradually expand the options available to participating countries.
Trump’s economic pressure may therefore create a strategic dilemma for Washington. Measures intended to influence other governments could also encourage some of them to develop alternatives that reduce their exposure to US financial leverage.
A Gradual Shift, Not an Immediate Dollar Collapse
The emerging BRICS payment strategy does not mean the dollar is about to lose its dominant position. Building alternative financial infrastructure is a long-term process, and progress will depend on practical implementation rather than political rhetoric alone.
The more immediate possibility is a gradual diversification of international payments, with local currencies playing a larger role in certain trade relationships.
For the United States, the key question is whether economic pressure will reinforce the dollar’s influence or give other countries stronger reasons to seek alternatives.
For BRICS members, the challenge is turning that ambition into payment systems that businesses can use reliably and at scale. The outcome could help shape the future balance of power in the global financial system.
