More than 50 countries are now shifting away from the dominance of the United States dollar (USD) in global trade, transitioning instead to the use of three major local currencies: China’s yuan, India’s rupee, and Russia’s ruble. This movement signifies a rapid acceleration of the de-dollarization trend, largely driven by economic cooperation among BRICS nations.

Local currency-based trade is expanding, particularly in the energy and defense sectors. A clear example can be seen in the partnership between India and Russia. Currently, India purchases oil from Russia using rupees, paying directly to the energy firm Rosneft without relying on the international dollar-based payment system. In the defense sector, Russia supplies about two-thirds of India’s military needs. In recent years, agreements in this area have increasingly used local currencies instead of dollars.

These practices are enabling BRICS nations to carry out bilateral trade through more financially autonomous mechanisms. Trade volume between India and Russia has surged dramatically — from US$13 billion in 2021–2022 to US$27 billion in 2022. This spike is largely due to the use of alternative payment methods involving yuan, rupees, and rubles for energy and technological needs.

A similar shift is taking place in the Middle East. Saudi Arabia has renewed a currency swap agreement with China and has opened the possibility of conducting oil trade in yuan. This move is seen as a significant blow to the global dominance of the petrodollar system.

Russian President Vladimir Putin stated that weaponizing the dollar for geopolitical purposes has backfired. “We are witnessing this firsthand. I believe it is a major mistake by those who are doing it,” Putin said during the BRICS Summit in Kazan, as quoted by Watcher Guru on Monday (June 9, 2025). Meanwhile, the Commonwealth of Independent States (CIS) is also reinforcing the de-dollarization trend, with more than 85% of cross-border transactions in the region now conducted in national currencies. Brazilian President Luiz Inácio Lula da Silva emphasized that economic unilateralism poses a threat to the global order amid rising polarization and fragmentation. “The only path forward is to consistently uphold multilateralism,” Lula asserted at the same BRICS forum.

In line with the growing momentum for de-dollarization, BRICS countries are developing an alternative payment system called BRICS Pay. Although the bloc does not yet have a unified currency, BRICS Pay enables cross-border trade in local currencies, facilitating transactions without relying on Western banking systems.

The system also offers a strategic solution for nations seeking to avoid the risks associated with economic sanctions. This infrastructure supports a more flexible, independent, and sustainable payment mechanism, especially amid rising global geopolitical tensions. As a result, over 50 countries are now actively engaging in international trade without the use of the dollar. The spread of yuan, rupee, and ruble usage is expected to continue expanding as global multipolar economic cooperation strengthens.

This development represents a significant transformation in the international economic landscape — not just economically, but also politically and strategically. De-dollarization is no longer a theoretical idea; it is a steadily unfolding reality.