Beyond the Dollar: How BRICS+ Is Rewiring Global Trade and Finance

The rise of the Petroyuan: China’s expanding influence in global energy markets challenges the long-standing dominance of the U.S. dollar, as more trade flows through alternative currency pipelines.

The Slow Unraveling of Dollar Dominance

For nearly eight decades, the U.S. dollar has functioned as the undisputed backbone of global trade and finance. From oil pricing to sovereign reserves, its dominance has been both structural and psychological. Yet today, a quiet but consequential shift is underway. Across emerging economies and geopolitical blocs, the conversation has moved from whether alternatives are viable to how quickly they can be scaled.

The rise of BRICS+—an expanded coalition including Brazil, Russia, India, China, South Africa, and new entrants, Saudi Arabia and the UAE, signals a deliberate push toward a more multipolar financial system. This is not a sudden collapse of dollar dominance but a gradual rewiring of global flows.

According to the International Monetary Fund, the dollar’s share of global foreign exchange reserves has declined from over 70 percent in 2000 to around 58 percent in 2024 (IMF COFER data). While still dominant, the erosion is unmistakable.

“The dominance of the U.S. dollar is likely to diminish over time.” — Kristalina Georgieva

This systemic shift reflects not just economics but geopolitics as explored further in Friend-Shoring and the Future of Global Trade Blocs: How Tariffs, Geopolitics, and Multipolarity Are Rewiring the Global Economy which delves into U.S and EUrope Sanctions regimes, and the rising trade disputes with China, Russia nad Iran have accelerated the search for alternatives. In effect, de-dollarization trends are less about rejection and more about diversification. This

De-dollarization Trends and the Rise of Parallel Systems

The most visible expression of de-dollarization trends is the growing use of local currencies in trade settlements. China and Russia now conduct over 90 percent of their bilateral trade in yuan and rubles, a dramatic shift from just a decade ago (Bank of Russia). Similarly, India has explored rupee-based trade mechanisms with multiple partners, including the Middle East.

At the heart of this transition is infrastructure. Payment systems such as China’s Cross-Border Interbank Payment System (CIPS) are emerging as alternatives to SWIFT. While SWIFT still dominates with over 11,000 institutions globally, CIPS has grown steadily, processing trillions in yuan-denominated transactions annually.

The implications are profound. A fragmented system means businesses must navigate multiple rails rather than relying on a single, universal network.

“Fragmentation could reshape cross-border payments and capital flows.” — Agustín Carstens

This parallelism introduces both opportunity and complexity. Firms can bypass certain geopolitical risks, but they also face new layers of compliance, currency exposure, and operational friction.

The petrodollar under pressure: Global energy markets face a shifting landscape as nations explore non-dollar settlements for oil trade, signaling a potential new era in the currency battlefield.

Oil, Commodities, and the Currency Battlefield

Energy markets have long been the stronghold of dollar supremacy. The “petrodollar” system, established in the 1970s, ensured that oil transactions were priced and settled in dollars, reinforcing global demand for the currency.

Today, that system is under pressure. China has expanded yuan-denominated oil contracts, while countries like Saudi Arabia have signaled openness to non-dollar trade. In 2023, China settled a liquefied natural gas trade with the UAE in yuan—a symbolic but significant milestone (Shanghai Petroleum and Natural Gas Exchange).

Commodities beyond oil are also entering the fray. Russia has increasingly priced exports in rubles or yuan following Western sanctions. Meanwhile, discussions around commodity-backed currencies—though still nascent—reflect a broader desire to anchor value outside traditional fiat systems.

“The dollar’s role reflects the size, stability, and openness of the U.S. economy.” — Jerome Powell

For businesses, this shift means rethinking procurement strategies. Currency is no longer just a medium of exchange; it is a strategic variable.

Regional Power Plays: A Fragmented Financial Map

The global financial landscape is becoming regionally defined. In Asia, China’s yuan is gaining traction as a trade currency, supported by its massive export base. In the Middle East, sovereign wealth funds are increasingly diversifying reserves and exploring non-dollar settlements. Africa, meanwhile, is experimenting with regional payment systems such as the Pan-African Payment and Settlement System (PAPSS).

Europe presents a more complex picture. The euro remains the second most important reserve currency, accounting for roughly 20 percent of global reserves (European Central Bank). However, its role is constrained by fragmented fiscal policy and reliance on dollar-based energy markets.

These regional dynamics reinforce a key point: de-dollarization trends are not uniform. They are shaped by local priorities, trade relationships, and political alignments.

For multinational businesses, this means strategies must be localized. A one-size-fits-all approach to currency and payments is increasingly untenable.

The Technology Layer: Blockchain, CBDCs, and Payments Innovation

If geopolitics is the catalyst, technology is the enabler. The rapid evolution of blockchain-based systems and central bank digital currencies (CBDCs) is building practical, alternative financial architectures that reduce reliance on traditional dollar-dominated rails like correspondent banking and SWIFT.

China’s digital yuan (e-CNY) stands out as the most advanced example. By late 2025, it had processed cumulative transactions worth over 16.7 trillion yuan (approximately $2.4 trillion), with expanding use in cross-border scenarios. It powers real-time retail and wholesale settlements in pilot programs across Hong Kong, ASEAN border regions (Thailand, Laos, Cambodia, Singapore), and beyond—allowing Chinese tourists and businesses to pay directly via QR codes or wallets without dollar intermediaries.

The flagship cross-border platform is Project mBridge, a multi-CBDC system originally coordinated by the BIS Innovation Hub and now fully governed by participating central banks (China, Hong Kong, Thailand, UAE, and Saudi Arabia). It reached minimum viable product (MVP) status in mid-2024 and has since exploded in scale: cumulative transaction volume surpassed $55 billion by late 2025—a 2,500-fold increase from early 2022 pilots—with the e-CNY accounting for over 95% of settlements.

Real-world use includes the UAE’s first government financial transaction settled directly on the platform in late 2025, targeting energy, commodities, and trade finance. These systems deliver near-instant, 24/7 settlement that is cheaper, more transparent, and less vulnerable to third-party sanctions or delays than legacy correspondent banking.

Private-sector innovation is also playing a role. Stablecoins and blockchain-based payment platforms are offering new ways to settle transactions without relying on traditional intermediaries.

BRICS nations are pushing further integration. India’s Reserve Bank has proposed linking member CBDCs (including the e-rupee, digital ruble, and others) for direct cross-border trade and tourism payments, building on 2025 summit commitments for payment-system interoperability.

This would enable seamless local-currency settlements across the bloc, bypassing dollar clearing entirely.

On the private side, blockchain-based stablecoins and tokenized payment platforms are filling gaps. Regulated USD-pegged stablecoins (such as USDC) now support instant cross-border settlements for businesses, while emerging non-USD or multi-currency options and tokenized bank deposits on public and permissioned chains (e.g., via platforms like those integrated with Visa or Revolut’s stablecoin tools) reduce intermediary costs.

These innovations let companies settle invoices or remittances directly on-chain without traditional banking rails.

Of course, the technology layer is not frictionless. Regulatory uncertainty, cybersecurity risks, interoperability challenges across different CBDC platforms, and the risk of fragmentation (multiple incompatible systems) remain serious hurdles. As the Bank for International Settlements has noted...

“New technologies could make cross-border payments faster and cheaper, but fragmentation remains a risk.” — Bank for International Settlements

For businesses, the message is unambiguous: investing in payment technology—whether CBDC-compatible wallets, blockchain rails, or stablecoin infrastructure—is no longer optional. It is a competitive necessity for staying resilient, lowering costs, and accessing new trade corridors in a multipolar financial world.

The shift in global economic power: BRICS+ nations explore de-dollarization strategies to reduce reliance on the U.S. dollar and strengthen local currencies in international trade.

Currency Risk in a Multi-Polar World

One of the most immediate implications of de-dollarization trends is increased currency volatility. As trade shifts toward multiple currencies, exposure to exchange rate fluctuations becomes more complex.

Historically, businesses could hedge primarily against the dollar. Today, they must manage exposure across a basket of currencies, each influenced by different economic and political factors.

According to the Bank for International Settlements, daily foreign exchange turnover reached $7.5 trillion in 2022 (BIS Triennial Survey), underscoring the scale and complexity of global currency markets.

In a fragmented system, hedging strategies must evolve. This includes greater use of derivatives, diversified currency reserves, and real-time risk monitoring.

The cost of getting it wrong is rising. Currency misalignment can erode margins, disrupt supply chains, and undermine competitiveness.

Cross-Border Payments Grow from Frictionless to Fragmented

For decades, globalization promised seamless cross-border transactions. The reality of a fragmented financial architecture is more nuanced.

Multiple payment systems mean varying standards, settlement times, and compliance requirements. While some routes may become faster and cheaper, others may introduce delays and additional costs.

The World Bank estimates that the global average cost of remittances remains around 6 percent, far above the UN’s target of 3 percent (World Bank Remittance Prices). Fragmentation could either exacerbate or alleviate these costs, depending on how systems evolve.

For businesses, operational agility becomes critical. This includes integrating multiple payment platforms, adapting to regional regulations, and maintaining liquidity across currencies.

The promise of frictionless globalization is giving way to a more complex but potentially more resilient system.

Strategic Implications for Businesses

The rewiring of global finance is not an abstract phenomenon. It has direct, tangible implications for how businesses operate.

First, treasury functions must become more sophisticated. Managing multiple currencies, payment systems, and regulatory environments requires advanced analytics and strategic foresight.

Second, partnerships matter. Aligning with financial institutions and fintech providers that understand regional dynamics can provide a competitive edge.

Third, resilience is key. Diversifying supply chains and financial channels reduces vulnerability to geopolitical shocks.

Ultimately, the shift toward a fragmented financial architecture demands a shift in mindset. Businesses must move from efficiency-driven models to resilience-driven strategies.

Looking Ahead

The trajectory of de-dollarization trends suggests a world where no single currency dominates absolutely. Instead, a network of regional and functional currencies will coexist, each serving specific roles.

This does not mean the end of the dollar. Its liquidity, depth, and institutional backing ensure it will remain central. However, its role will be more contested and less absolute.

Looking ahead, three developments are likely to shape the next phase. First, the expansion of BRICS+ could accelerate the adoption of alternative trade mechanisms. Second, technological innovation will continue to lower barriers to entry for new payment systems. Third, geopolitical tensions will remain a driving force behind diversification efforts.

For businesses, the message is clear. The future of global finance will be defined by complexity, not simplicity. Those who adapt early—by investing in technology, diversifying risk, and understanding regional dynamics—will be better positioned to thrive.

The age of a single financial center is giving way to a constellation of competing systems. In that world, agility is power, and strategy is survival.