Headline: Brazil’s VP: BRICS isn’t trying to “dethrone” the dollar — it’s seeking cheaper, safer payment options
Brazilian Vice President Geraldo Alckmin pushed back on headlines that BRICS aims to replace the U.S. dollar for intra-bloc trade, while outlining why the group is actively exploring alternatives to dollar-dominated settlement systems.
Alckmin said rising tensions with the U.S.—which he framed as driven by former President Trump’s tactics—have encouraged emerging economies to diversify partnerships and lean more on alliances like BRICS. That dynamic, he argued, makes the 10-member bloc increasingly attractive compared with Western partners.
But he was clear about intent: “BRICS is not aimed against any country,” or the U.S. dollar. The bloc’s goal, he said, is to give emerging economies “a greater voice and more effective tools within a global system that remains dominated by developed economies.”
Practical discussions are underway, Alckmin confirmed, around local-currency settlements and alternative payment arrangements. The aim is to cut costs, reduce exposure to policy shifts from the West, and limit vulnerabilities—not to immediately replace the greenback as the global reserve or trade currency.
“Discussions on local-currency settlements and alternative payment arrangements are intended to reduce costs and vulnerabilities. Not to replace the US dollar,” he added.
Alckmin also emphasized Brazil’s dual strategy: maintaining a constructive relationship with Washington while deepening South–South ties with partners such as India. He characterized that approach as pragmatic rather than confrontational.
Bottom line: as of 2025, no BRICS currency has been launched and the U.S. dollar remains the de facto medium for international trade. Still, the bloc’s push for cheaper, local-currency settlement options could signal incremental shifts in how emerging markets manage cross-border payments—an issue that bears watching for finance and crypto communities alike.
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