Russia’s push to break free from the dollar is gaining momentum, thanks to the New Development Bank (NDB), also known as the BRICS Bank. This financial institution, created by Brazil, Russia, India, China, and South Africa, is becoming a key player in Moscow’s strategy to build an economic world beyond U.S. dollar dominance.
The BRICS Bank recently opened its doors wider by welcoming Egypt, the United Arab Emirates, Bangladesh, and Uruguay as new members. This expansion shows how more countries want alternatives to traditional Western-led financial systems. The bank now handles transactions in local currencies instead of dollars, which helps Russia dodge the financial restrictions placed on it.
“The BRICS Bank represents a significant shift in global financial power,” says Elena Kovrova, an international finance expert. “By offering alternatives to dollar-based transactions, it creates breathing room for economies facing Western sanctions.”
Russia’s journey away from the dollar started years ago but picked up speed after 2022. The country has cut its dollar reserves from 45% to less than 5% in recent years. Instead, Russia has been stocking up on Chinese yuan and gold. Many Russian businesses now prefer to trade in friendly countries’ currencies.
The change is already showing results. Trade between Russia and China hit record levels last year, with over 90% of deals using either rubles or yuan instead of dollars. India and Russia have also figured out new payment systems for oil trades that skip Western banking networks entirely.
For everyday Russians, this shift means adapting to new financial realities. Many now hold savings in multiple currencies and use alternative payment apps since Visa and Mastercard pulled out of the country. Local banks have created their own card system called “Mir” that works within Russia and in some friendly nations.
“De-dollarization isn’t just about governments and big banks,” explains Mikhail Petrov, a Moscow-based financial advisor. “It’s changing how regular people think about money and savings. Many Russians now understand currency diversification better than average Americans.”
The BRICS group is thinking even bigger than just reducing dollar use. During recent meetings, member countries discussed creating a new BRICS currency. While still just an idea, such a currency could eventually challenge the dollar’s role in global trade.
China plays a crucial role in these efforts. The yuan has become Russia’s go-to currency for international trade, growing from handling less than 10% of Russia’s foreign trade to over 40% today. Beijing has been quietly building systems that allow cross-border payments without using SWIFT, the messaging network that connects most of the world’s banks.
Not everyone believes de-dollarization will succeed completely. The dollar still dominates global finance, accounting for about 60% of global reserves and 88% of international transactions. Many experts point out that creating true alternatives requires more than just political will—it needs deep, liquid markets and global trust.
“The dollar’s strength comes from America’s economic fundamentals and the depth of its financial markets,” notes financial historian James Wilson. “Challenging that requires more than just wanting an alternative.”
The impact of these changes extends beyond Russia and the BRICS nations. Countries from Southeast Asia to Latin America are watching closely, with some already increasing their yuan holdings and exploring new payment arrangements.
For global businesses, this shifting landscape means adapting to a more complex world where multiple currencies and payment systems might be needed. Companies that can navigate this new reality will find opportunities in markets that were previously dollar-dependent.
The BRICS Bank’s support for Russia’s de-dollarization drive highlights a broader trend: the gradual emergence of a multipolar financial world. While the dollar won’t lose its crown overnight, the foundation is being laid for a global economy where alternative currencies and institutions play a much bigger role.
As these changes unfold, ordinary people around the world may eventually find themselves using a mix of currencies and payment systems depending on who they’re trading with—a significant shift from the dollar-dominated world we’ve known for decades.
