In a world where the balance of economic power is shifting, the BRICS bloc—an informal union of rapidly developing nations—has emerged as a focal point for countries seeking alternatives to the traditional Western-led financial order. Over the past two decades, BRICS has grown from a catchy acronym into a formidable coalition, now comprising ten member states: Brazil, Russia, India, China, South Africa, Iran, the United Arab Emirates, Egypt, Ethiopia, and Indonesia. This expansion, coupled with bold moves toward financial integration and local currency settlements, is reshaping the global economic landscape in ways that few could have predicted at the start of the millennium.
According to CNBC’s Fast Money, on December 9, 2025, economist César Bergo highlighted how BRICS nations are intensifying efforts to expand the use of local currencies in international transactions. This shift, he explained, is not merely about reducing transaction costs—though that is a significant benefit—but about lessening dependence on the US dollar and the volatility it brings. “The negotiation becomes immediate, without the need to buy expensive dollars and then sell them cheaply,” Bergo stated, emphasizing the practical impact for exporters and importers who have long faced high currency conversion spreads and unpredictable fluctuations.
Brazil, for example, already operates local currency mechanisms within Mercosur, facilitating trade with Argentina, Uruguay, and Paraguay without the intermediary step of converting to dollars. China, meanwhile, has established similar arrangements with over 140 trading partners, and Russia has increasingly turned to direct operations in Chinese yuan, especially after Western sanctions limited its access to traditional networks like Swift. As Bergo told CNBC, “The speed of payment is crucial. This is similar to what we do with Pix,” referencing Brazil’s instant payment system that has become a model for innovation and global integration.
But while the dollar remains the world’s primary reserve currency, the push for local currency settlements reveals a deeper motivation: emerging countries are wary of exposure to US monetary policy cycles and geopolitical decisions. The ongoing trade disputes between Washington and Beijing, and the tariffs imposed in recent years, have only reinforced the desire among BRICS members to chart a more independent financial course. Bergo noted, “The United States needs to watch this movement closely, but it’s an evolution that’s here to stay.”
Of course, this transformation is not without its challenges. As Bergo explained, the technical obstacles are considerable. National payment systems must harmonize rules, technological standards, and messaging protocols to ensure interoperability—a complex dance that requires both regulatory and technological adaptation. Countries like China and Russia are already testing their own direct arrangements, but the path to a seamless, global network of local currency settlements will not be easy. “Interoperability between national systems remains one of the most complex steps in consolidating the new model,” he told CNBC.
For Brazilian companies, the benefits are tangible. Under the current system, exporters must convert reais to dollars, navigate a maze of exchange rates (commercial, tourism, and the Central Bank’s Ptax), and then reverse the process when funds return from abroad—all of which generates costs and delays. With direct compensation systems, a Brazilian bank can send reais directly to a foreign institution, which instantly converts it to the partner’s local currency. Financial managers, Bergo advised, should pay close attention to the cost-saving opportunities this new model presents, even as banks adapt their systems in the months ahead.
The strategic implications of BRICS’s evolution extend far beyond finance. At the Doha Forum on December 9, 2025, experts debated how the expansion of BRICS and the Gulf Cooperation Council (GCC) is creating new connectivity frameworks that influence the geopolitical and economic order. With the inclusion of the UAE, Saudi Arabia, and Egypt—and the possibility of future members like Bahrain, Chile, and Colombia—BRICS is broadening its reach and influence. Gulf states, in particular, are positioning themselves as vital bridges between East and West, leveraging investment corridors, energy transition projects, and technological collaboration to cement their role in this new architecture.
Panelists at the Doha Forum explored whether these emerging alliances signal a fundamental shift toward multipolarity—a world where power is more evenly distributed across several blocs, rather than concentrated in the hands of a few. As BRICS explores alternatives to traditional financial systems, including the possibility of a common currency and enhanced South-South cooperation, diplomatic and strategic opportunities abound for both the bloc and its partners. The implications for global governance are profound, with BRICS now serving as a platform for the interests of the Global South and a counterweight to established Western institutions.
The journey of BRICS from concept to influential coalition has been marked by key milestones. The first official summit took place in Ekaterinburg in June 2009, with South Africa joining in 2011 to form the now-familiar BRICS acronym. By 2013, the group had established the New Development Bank and the Contingent Reserve Arrangement, each with an initial capital of US$100 billion, to provide financial support and infrastructure investment for member states. The “BRICS Plus” format, introduced in 2017, expanded dialogue to include countries like Egypt, Kenya, Mexico, and Thailand, setting the stage for broader partnerships.
The Johannesburg summit in August 2023 was a watershed moment, inviting the UAE, Argentina, Iran, Ethiopia, and Saudi Arabia to join the bloc. By early 2024, Iran, Egypt, the UAE, and Ethiopia were full members, and Indonesia followed in January 2025, becoming the first Southeast Asian nation in the group. With each new member, BRICS’s leverage grows, enhancing its ability to promote the interests of the Global South and to foster South–South cooperation. “The major advantage of expansion is the strengthening of direct ties among a greater number of Global South countries—from Latin America, Africa, and Asia—enhancing South–South cooperation,” said Anibal Garzon, a writer and expert on BRICS, as quoted in a recent analysis.
Yet, expansion brings its own set of challenges. As Henrique Domingues, Special Representative of the International Municipal BRICS Forum, cautioned, “Increasing the number of members increases the diversity of opinions and cultural contradictions. BRICS operates on progressive consensus, meaning guiding principles are determined through negotiation and adjustment according to each country’s needs rather than voting.” Some experts suggest that as the group grows, it may need to reform its decision-making mechanisms, possibly shifting from consensus to majority voting to maintain effectiveness.
Looking ahead, the prospect of a single BRICS currency remains on the horizon, though experts agree it would require a robust, independent architecture—a central bank, institutions, and perhaps even a parliament. Joint investments in strategic sectors like oil, gas, and new technologies are likely to increase, further cementing BRICS’s status as a supranational geopolitical player.
For now, BRICS stands as a guide for many Global South countries, offering a blueprint for financial and political cooperation outside the traditional Western orbit. Its ongoing evolution is not just a story of economic pragmatism, but of a world in flux—where alliances are shifting, new institutions are rising, and the future of global governance is up for grabs.
