BRICS governments are accelerating a parallel financial system to settle trade outside Western controls, rolling out a pilot in late 2025 and expanding in 2026 to reduce reliance on the US dollar. They cite reserve risks and sanctions as reasons for the move.
The US dollar fell to a four-year low this week, sliding about 3% in roughly a week, and traders expect more weakness ahead. ING global head Chris Turner stated “Most people would think the dollar should, could, and would weaken further this year. The jury’s out on the timing but less so on the direction.”
The BRICS bloc has bought over 6,000 tons of gold, with Russia holding 2,336 tons and China holding 2,304 tons. Gold topped $5,500 per ounce in January 2026, and in 2025 central banks’ gold holdings exceeded US Treasury holdings in value (Ed. note: this is a rare shift).
A pilot called the Unit launched in late 2025, combining 40% physical gold and 60% BRICS currencies for cross-border settlement. The BRICS CBDC system, known as BRICS Pay, is due for wider deployment in 2026, and the Reserve Bank of India proposes linking member CBDCs.
The US dollar share of global reserves fell from 58.2% in 2024 to about 56.9% in early 2026. The mBridge platform has processed roughly $55 billion, with 95% using the digital yuan, showing non-dollar settlement at scale.
Markets cite policy uncertainty and trade tensions for dollar weakness, and several pension funds have reduced US Treasury holdings. Currency strategists largely agree the dollar likely has further to fall, with timing as the main debate.
