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How would a new BRICS Currency affect the dollar?

The Reserve Bank of India has proposed linking the digital currencies of BRICS nations to simplify trade and tourism payments, potentially reducing dependence on the US dollar. Recommended for discussion at the upcoming BRICS summit in India, the move comes amid rising geopolitical tensions and stalled India–US trade talks. Russia’s ongoing experiment with a gold-backed currency, the “Unit,” reflects a broader shift as BRICS economies increase gold reserves and cut reliance on US treasury bonds. With strong resource complementarities and expanding digital currency pilots, the bloc may be laying the groundwork for gradual de-dollarisation.

Published:February 6, 2026 at 11:58 AM3 min read
How would a new BRICS Currency affect the dollar?
Correspondent : Shreyashi Gupta

The Reserve Bank of India (RBI) has proposed the linking of digital currencies of BRICS nations to ease trade and tourism payments, reducing their reliance on the US dollar, news agency Reuters has reported.

The central bank has recommended the Union government to include this proposal in the agenda for the BRICS summit to be held in India later this year, according to two anonymous sources quoted by Reuters.

The proposal comes amid rising geopolitical tensions and an India-US trade deal still in limbo. The US has previously opposed any attempts to move away from the dollar as the key currency for international trade and other payments.

US President Donald Trump has also threatened BRICS nations - Brazil, Russia, India, China, South Africa and others - with 100% tariffs if they create a currency to rival the US dollar.

There is an actual experiment going on in Russia for a new currency called the Unit. The Unit’s 40% value comes from physical gold and 60% from the currencies of the BRICS nations Brazil, Russia , India, China and South Africa.
There is no currency in recent times whose value is backed by so much in Gold, which could be the reason why these large economies in the last five years are hoarding up on gold and reducing their dependency on US treasury bonds.
At present, the BRICS nations do about five hundred billion dollars of annual trade with each other, even if they were to move 50% percent of that trade onto the Unit the new currency which means 250 million dollars of trade, which practically requires 100 million dollars of physical gold to maintain this system. If this is successful, this can be a threat to Trump to reduce the tariffs and a move towards de-dollarization to bring the world back to sanity or else the Unit currency could be a reality.

Because China has rare earths, Latin America has silver which the world requires, India has the largest consumer base(Population),South Africa has platinum and Russia has so much oil it can provide to all of these BRICS nations alone.

The five founding members of the alliance are running pilot projects for developing their digital currencies. India's digital currency, the e-rupee, which was launched in 2022 - has a total of 7 million retail users, Reuters reported.

(The writer is a second-year BA Mass Communication student, who likes immersing herself in reading Geopolitical Affairs. She loves to watch movies on socio-political issues and highlight marginalized voices in the society.)
Tags
#BRICS India Russia Geopolitics#RBI#Digital currency#brics#russia#india

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