Introduction

What if the US dollar doesn’t dominate the financial world? 

The BRICS (Brazil, Russia, India, China, South Africa, and recent additions) is actively exploring a new currency or payment framework that could challenge the status quo. 

For global finance leaders, this raises big questions: Will this shift threaten dollar dominance? Or open new opportunities for businesses outside the US? This post unpacks what’s happening, what it means, and what you should watch, especially if you deal with cross-border payments in Africa.

What the BRICS Currency Proposal Entails

• Exploration, not launch: As of mid-2025, BRICS leaders have discussed concepts around a shared currency or unit of account, possibly tied to a basket of currencies, commodities, or digital platforms. But no formal BRICS currency has been launched. 
• Focus on local currency settlements: Rather than a sudden switch, many BRICS nations are pushing for trade to be settled in their own currencies or alternative payment systems, reducing exposure to the dollar’s volatility.

Why the US Dollar’s Reserve Status Persists

• Deep liquidity & trust: The US dollar remains the most trusted and liquid currency in global trade and reserves. Central banks hold it because of its stability, transparency, and the strength of US institutions.
  
• Infrastructure & habit: Global financial systems, contracts, commodities, and trade are deeply structured around the dollar. Replacing it isn’t just a policy adjustment; it’s technical, legal, and economic inertia.
  
• Complement, not replace: Many analysts believe any BRICS currency or payment platform will act as a complement rather than a full replacement in the near term. The dollar’s role won’t vanish overnight.
  

The Threats & Risks Involved

• De-dollarization pressure: Growing geopolitical tensions, sanctions regimes, and trade disruptions have prompted some countries to seek alternatives.
  
• Volatility in the dollar’s status: According to recent data, global reserves held in USD have decreased from about 65% a decade ago to approximately 58% in 2024.
  
• Regulatory & infrastructure hurdles: For BRICS or any bloc to establish a credible rival, they must overcome issues like inter-country regulatory alignment, capital account openness, trust in currency stability, and payment system reliability.

Opportunities for Businesses & Africa

• More currency options: As settlement in local or BRICS currencies gains traction, Nigerian and African businesses could benefit from lower FX costs in certain trade corridors.
  
• Reduced USD dependency: Less reliance on the dollar can shield businesses from volatility in USD exchange rates, asset freezes from sanctions, or delays in USD settlement lines.
  
• New payment infrastructure: Initiatives like “BRICS Pay” or local settlement platforms may offer alternate rails that are cheaper, faster, or more reliable. These could be particularly useful for businesses trading with other BRICS or partner countries.
  

What CFOs & Treasurers Should Do Now

1. Monitor reserve currency trends: Track how global reserve allocations are moving (e.g., what share of USD vs others).
   
2. Stress-test FX exposure: Analyze how shifts in USD strength or sanctions risk affect costs and liquidity.
   
3. Explore local currency corridors: Negotiate with suppliers and clients to accept or pay in non-USD currencies where feasible.
   
4. Proactively assess payment partners: Ensure they can adapt to new rails, regulatory regimes, or multi-currency settlement systems.
   
5. Build flexibility into hedging strategy: Allow for currency shifts, volatile corridors, and regulatory changes.

Conclusion

A BRICS currency, or at least a shift in payment realities toward local currency settlement, presents both risk and opportunity. For the US dollar, the challenge grows but is far from decisive. For businesses, especially in Africa, this could mean lower costs, less exposure, and greater control over cross-border payments. The world is becoming more multipolar, and CFOs who prepare, adapt, and partner wisely will be the ones who thrive.

To stay ahead of today’s realities and prepare for the coming shifts in global payments, businesses need the right partner. Bluebulb provides the expertise, speed, and reliability to help you navigate evolving FX landscapes.

Partner with Bluebulb to trade confidently, adapt seamlessly, and grow globally. Contact us today at +44 20 3769 7302 or visit www.bluebulb.co.uk to get started.