Under Trump’s shadow, Brics takes step towards de-dollarisation

In a move that could impact global financial markets, the Brics countries have taken a significant step towards reducing their dependence on the US dollar. At the opening day of the 18th Brics summit, the bloc unanimously adopted the "New Delhi Declaration 2026", which includes plans to expand trade and payments in local currencies.

The declaration, a 45-page document, was the result of intense negotiations among the member nations, who found common ground despite their diplomatic differences. Indian Prime Minister Narendra Modi, who chaired the summit, stated that no member had "objected" to the text. The declaration emphasized the need for fast, low-cost, accessible, efficient, transparent, and safe payment systems using local currencies for trade settlements and investments.

However, the leaders also stressed that a "one-size-fits-all approach" was not feasible, and national priorities must be respected. While the declaration does not directly mention the United States, it criticizes unilateral tariffs, sanctions, and protectionist measures, which are reminiscent of Trump's administration policies. The declaration also expresses serious concerns about unilateral coercive measures, including economic sanctions and secondary sanctions, deeming them contrary to international law.

This move could be seen as a response to US pressure on Brics to maintain the dollar's dominance in global trade. The declaration's cautious language reflects India's delicate balancing act as it seeks to assert its strategic autonomy without turning Brics into an explicitly anti-US bloc.