BRICS is a group of major emerging economies (Brazil, Russia, India, China, and South Africa) that aims to strengthen cooperation in trade, finance, and global governance. De-dollarisation means reducing dependence on the US dollar in international trade and financial transactions. Instead of settling trade in dollars, BRICS countries are increasingly using their own currencies or alternative currencies for trade payments.
This shift is important because relying heavily on the US dollar makes countries vulnerable to changes in US monetary policy, exchange rate volatility, and sanctions. By using local currencies, BRICS countries can protect their economies from external shocks, reduce transaction costs, and strengthen economic sovereignty. Recent developments show that India–Russia trade is increasingly conducted in rupees and rubles, China and Brazil are using yuan for trade settlements, and the BRICS New Development Bank is expanding loans in local currencies. Overall, de-dollarisation is a gradual move toward a more balanced and stable global financial system.
In this context, ancient Indian literature - Chanakya’s Artha shastra also supports the idea of economic self-reliance. He states, “अर्थस्य मूलं राज्यं” (Arthasya mūlaṁ rājyam), meaning the economy is the foundation of the state. This suggests that a strong and independent economy is essential for national power and sovereignty. De-dollarisation aligns with this view as it aims to reduce external dependence and build a stronger economic base for the nation.
De-dollarisation is not an anti-dollar move but a strategic effort to reduce overdependence on one currency. BRICS initiatives aim to strengthen economic resilience and promote monetary sovereignty. Over time, this may lead to a more balanced and multipolar global financial system.
