BRICS Bank VP: De-dollarization process is underway
Shafaq News – Moscow
The process of moving away from the US dollar—referred to as "de-dollarization"—is already in motion across many countries, the Executive Director of the International Monetary Fund and Vice President of the New Development Bank, Paulo Batista Nogueira, affirmed on Monday.
In an interview with Russia’s Sputnik News Agency at the Valdai Discussion Club, Nogueira described the US dollar as both costly and risky, arguing that "the United States is undermining its credibility through its behavior."
He highlighted the expansion of the New Development Bank as a strategic priority, while noting that the political enlargement of the BRICS group remains a separate and slower-moving process. “That goal has been achieved very slowly, but it is ongoing,” he remarked, pointing out that member states increasingly rely on bilateral trade in national currencies and are avoiding the dollar within the bank's operations.
De-dollarization, he explained, is unfolding as countries conduct transactions directly in their local currencies. “This is happening within BRICS and beyond,” he noted.
Nogueira also observed a shift in global financial behavior, with states moving reserves away from the dollar and increasing trade in domestic currencies. “Eventually, in my view, we will need to move toward a new reserve currency. But that is something for the future.”
He dismissed the likelihood that Washington’s punitive strategies would reverse this trend. “Trump-era heavy-handed tactics will not work, especially since the countries bypassing the dollar are not hostile to the United States.”
As for a possible BRICS currency, Nogueira downplayed the prospect of near-term implementation, suggesting it may not materialize even in the medium term, stressing that the concept should not be confused with a unified currency like the euro. “What could be done—and has been proposed by several people—is a shared reference currency for international transactions to replace the dollar as an alternative.”
