Russian President Vladimir Putin is testing the nerves of the international economy, promoting trade in local currencies within BRICS and warning that a rushed common currency could lead to "serious mistakes," laying the groundwork for a potential shift away from the dollar.
During his visit to India, Russian President Vladimir Putin brought back the idea of a common monetary platform for BRICS member states, emphasizing that trade in local currencies is being promoted for practical reasons, not to undermine the dollar, while ruling out hasty moves toward a common currency, pointing to lessons from the Eurozone.
During the 23rd Annual India–Russia Summit in New Delhi, important agreements were signed, and both parties committed to strengthening their cooperation within BRICS+, the United Nations, the G20, and the Shanghai Cooperation Organisation. Russia expressed full support for India's upcoming BRICS chairmanship in 2026.
Trade in local currencies, not a common currency
One of the topics discussed was the strengthening of trade among BRICS using local currencies. Transactions between Russia and China are conducted 90% in local currencies, while Russia and India conduct over 90% of their trade transactions in the same manner. Despite the increase in trade in local currencies and discussions about a common payment platform, the majority of member countries, including Russia, currently reject the idea of a common currency.
Trade within BRICS has increased in recent years, with the addition of new members: Saudi Arabia, the UAE, Egypt, Ethiopia, and Iran in 2024, and Indonesia in 2025. If one examines trade within BRICS in local currencies, a significant increase is also observed. 90% of bilateral trade between Russia and China is conducted in local currencies, while a significant percentage of India-Russia trade—estimated at over 90%—is also conducted in local currencies. BRICS member states are promoting a common payment platform to boost trade.
This issue was high on the agenda at both the 2024 BRICS Summit in Kazan and the 2025 BRICS Summit in Rio de Janeiro, Brazil. During the 2024 Summit, Putin stated, "The dollar is being used as a weapon. We see this clearly. I believe it is a big mistake by those who do it." Although trade in local currencies is necessary to bypass sanctions and many countries seek to diversify their economic relations, the idea of a common currency has been rejected by most BRICS members, including Russia. During his visit to India, Putin stressed the need to increase bilateral trade—including trade in local currencies—but pointed out that the organization must be cautious about the idea of a common BRICS currency.
In an interview, the Russian President stated, "There is no reason to rush. And if no one rushes, they will avoid many serious mistakes." He also emphasized the need to draw lessons from the Eurozone, saying that countries cannot be forced to follow a "common system" if their structures are not aligned.
Reservations from India
India, which will take over the BRICS chairmanship in 2026, has adopted a nuanced approach. Although it promotes trade in local currencies and encourages other member states to adopt the Unified Payment Interface (UPI), it has unequivocally distanced itself on more than one occasion from the idea of a common BRICS currency. Beyond economic reasons, there is a clear geopolitical cause—India is cautious about sharing a currency with China.
BRICS, de-dollarization, sanctions, and the dollar
It is important to understand that the changing geopolitical situation, and especially economic sanctions, has led several countries to trade in local currencies, but this does not mean that all of them aim to undermine the dollar. Those who believe that the dollar will be threatened by trade in local currencies—including President Donald Trump—must adopt a more nuanced approach to the increasing use of local currencies among developing countries, particularly BRICS members.
Recently, American investor and author of "Rich Dad Poor Dad," Robert Kiyosaki, commenting on the announcement of a gold-backed BRICS currency in a post on X, emphasized the need for investors to move away from the dollar and consider alternatives such as cryptocurrencies and precious metals. In his post, he wrote, "Bye Bye US Dollar."
The idea of a BRICS common currency is unfeasible, while trade in non-dollar currencies is expected to increase due to the sanctions against Russia. Countries are seeking to reduce their reliance on the US dollar, but the phenomenon is extremely complex and cannot be viewed with simplistic dichotomies.
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