BRICS nations accelerate shift from dollar amid trade war risks

WISE NEWS PRESS / ISTANBUL, Türkiye — Dec. 1, 2025

BRICS nations are accelerating efforts to establish non-dollar payment infrastructures as the aggressive trade policies of the Trump administration disrupt global financial balances and increase borrowing costs for emerging markets.

While a depreciating U.S. dollar historically relieves pressure on developing economies, the current geopolitical climate has created a paradox where risk premiums are rising despite currency fluctuations. Reports indicate that 2026 could mark a historic shift in the global monetary order as major powers seek to insulate themselves from American financial dominance.

Rising costs despite weaker dollar

According to an analysis by The Economist, the unusual financial landscape is a direct result of the Trump administration's expansion of trade wars. Aggressive tariffs and challenges to international agreements have generated significant market uncertainty.

Typically, a weakening dollar—which has reportedly lost nearly 10 percent of its value against major currencies—reduces the debt burden on developing nations. However, due to heightened global instability, risk premiums have surged. Consequently, countries that hold significant external debt in dollars are facing increased financing costs, negating the benefits of the currency's depreciation.

BRICS pushes for alternative systems

In response to the volatility, the BRICS bloc—led by China, Russia, India, and Brazil—is moving to operationalize new payment infrastructures that eliminate the necessity of the dollar in trade.

• Yuan Swap Lines: China has expanded its yuan swap lines with major trading partners, with over 40 countries now utilizing the yuan as an emergency reserve currency.

• Digital Payment Network: Work is underway on a BRICS-internal digital payment system designed to phase out the dollar in commercial and financial transactions between member states.

Central bank reserve preferences reflect this shift. The share of the dollar in global reserves has reportedly fallen to around 60 percent, the lowest level in two decades. This trend is further driven by shifting trade routes; in the first half of 2025, China’s exports to Africa and Southeast Asia rose by 25 percent and 20 percent, respectively, reducing reliance on American markets.

2026 viewed as critical turning point

Despite these movements, the dollar remains the dominant force in the global economy, accounting for approximately 90 percent of financial transactions and half of global trade invoicing. Experts note that while the U.S. share of global trade has dipped below 10 percent, the dollar's reputation for speed and security keeps it entrenched.

However, the events of 2025 are being interpreted as a strong signal of a directional change. With the uncertainty triggered by the ongoing trade war, developing nations are evaluating non-dollar options more seriously than ever, with 2026 projected as a potential year for a tangible shift in the global financial architecture.

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