In a year marked by sweeping changes to the global financial order, Brazil and China have taken center stage in a bold initiative to reduce reliance on the US dollar within the BRICS bloc, while also championing technological innovation through artificial intelligence (AI). These parallel efforts, unfolding in 2025, signal not just an economic pivot but a broader push for a multipolar world order—one where emerging economies shape the rules of trade, technology, and development.
Under Brazil’s rotating presidency of BRICS in 2025, the group—comprising Brazil, Russia, India, China, and South Africa—accelerated plans to facilitate trade in local currencies. According to Devdiscourse and recent BRICS communiqués, Brazil and China have now fully operationalized an agreement to settle bilateral trade in their own currencies—the Chinese yuan and the Brazilian real—bypassing the US dollar entirely. This agreement, formalized in 2023, has become the backbone of a new financial architecture for the bloc.
The implications for global commerce are profound. Payments for major Brazilian exports to China, such as soybeans, iron ore, and oil, are increasingly handled in yuan and real. Brazil’s Secretary of the Ministry of Finance, Tatiana Rosito, noted that this mechanism "will facilitate higher volumes of trade and reduce US influence in commercial transactions." The move, she emphasized, is part of Brazil’s broader strategy to diversify its international partnerships and lessen dependence on Western-dominated financial systems.
But Brazil and China are hardly alone in this endeavor. China and Russia now conduct nearly all their bilateral trade in yuan and rubles, sidestepping the dollar. India, meanwhile, has begun purchasing Russian oil in rupees, while Indonesia—one of BRICS’ newest members—has announced plans to launch foreign exchange operations centered on the yuan and Japanese yen. This regional shift, as reported by Devdiscourse, is part of a wider trend toward “de-dollarization.”
Supporting these new arrangements is BRICS Pay, a decentralized payment messaging system designed to facilitate transactions in local currencies and avoid traditional Western networks such as SWIFT. Still in its pilot stages, BRICS Pay is expected to see broader deployment by late 2025, with possible expansion into digital currencies and blockchain-based solutions down the road. The system is viewed as a linchpin for smoother trade and investment flows within the bloc, helping to reduce the need for costly currency conversions and to shield member nations from the impact of US financial sanctions.
The numbers tell a striking story. While the US dollar remains dominant—accounting for over 80% of global trade settlements—the yuan’s share in international payments climbed to 3.17% in September 2025, up from 2.93% the previous month. Within intra-BRICS trade, the yuan is now used in around 50% of transactions, a dramatic leap from just 2% a few years ago. China’s yuan-denominated soybean transactions with Brazil alone are valued at a staggering $80 billion, underscoring the scale of the shift.
The expansion of BRICS, with new members like Saudi Arabia and Indonesia, only strengthens the bloc’s clout in global energy and financial markets. The inclusion of oil-rich Saudi Arabia, for instance, could have ripple effects for how energy is priced and paid for worldwide—potentially challenging the petrodollar system that has underpinned global finance for decades.
Yet, for all these advances, the BRICS currency initiative faces significant hurdles. The US dollar’s entrenched position in global finance is not easily dislodged. Internal divisions within BRICS, as well as the lack of a unified regulatory framework for cross-border payments, present real obstacles. The creation of a single BRICS currency or a fully integrated payment system remains a distant goal, with most progress taking place through bilateral agreements and incremental steps rather than sweeping reforms.
Moreover, the rise of the yuan as a global currency is constrained by China’s own capital controls and the limited convertibility of the renminbi. While the yuan is gaining traction in BRICS trade, it still lags far behind the dollar and euro in global payments. For many international businesses and investors, the dollar remains the currency of choice for its liquidity, stability, and deep financial markets.
The geopolitical stakes, however, are just as high as the economic ones. By reducing their dependence on the US dollar, BRICS nations are seeking greater autonomy on the world stage and challenging the dominance of Western financial institutions. As Devdiscourse points out, this could accelerate the emergence of a multipolar world order—one where multiple currencies and financial systems coexist and compete for influence.
For the United States, the BRICS initiative represents a potential threat to its economic leverage and the effectiveness of financial sanctions. The expansion of yuan-denominated trade and alternative payment networks could undermine the reach of US monetary policy and reduce global demand for dollars, with unpredictable consequences for international finance.
Amid this financial transformation, BRICS is also positioning itself at the cutting edge of technological innovation. On December 13, 2025, Prof. Dr Ajith Abraham, Vice-Chancellor of Sai University, delivered a keynote at the BRICS Business Forum in Moscow during the AI Journey 2025 conference. His message was clear: the future of AI in BRICS depends on collaboration, not competition.
Prof. Abraham called for a "collaborative global approach to AI," emphasizing the importance of cross-national research hubs, talent mobility, and educational reform. He argued that AI could be a game-changer for addressing socio-economic challenges, especially in sectors like healthcare and agriculture. "Equitable AI development must be aligned with BRICS' growing influence in global research and development and technological innovation," he stated, urging member nations to harness their collective strengths for the common good.
This vision of technological cooperation dovetails with the bloc’s financial ambitions. As BRICS Pay and similar systems evolve, they could pave the way for more resilient, diversified, and technologically advanced global financial networks. The push for AI and digital payments reflects a broader trend: BRICS nations are not just challenging the old order, but actively building the infrastructure for a new one.
Looking ahead, the BRICS bloc is expected to continue expanding its influence through new trade agreements, economic partnerships, and innovations in cross-border payments and AI. The development of BRICS Pay and the promotion of local currencies could help create a more balanced and diversified global financial system—but only if the bloc can overcome its internal challenges and coordinate its efforts effectively.
As the world watches these developments, one thing is clear: the rise of the yuan as a major trade currency within BRICS, and the bloc’s commitment to AI and technological innovation, are reshaping the global landscape in ways that will affect businesses, investors, and policymakers for years to come.