In October 2024, the BRICS Summit took place in Kazan, Russia, marking a pivotal moment in the bloc’s history as Egypt, Ethiopia, Iran, and the UAE attended for the first time since their recent inclusion. Representing some of the world’s largest and most diverse economies, BRICS expanded its scope this year by taking concrete steps toward de-dollarization and strengthening regional partnerships across multiple sectors. Although the dominance of the U.S. dollar in global finance remains formidable, this summit showed that BRICS is focused on creating systems that could, in time, reshape international trade and financial operations, particularly through cooperative projects like a cross-border payments system and a proposed grain exchange.
The expanded BRICS, now including Egypt, Ethiopia, Iran, and the UAE, stands as an influential bloc on the global stage, representing a significant share of the world’s population, GDP, and central bank reserves. The Kazan Summit witnessed the leaders discussing plans for reducing their reliance on the U.S. dollar, which has long dominated global trade and finance, accounting for 90% of foreign exchange transactions worldwide. The attendees underscored a need for a multipolar financial system less vulnerable to the influence of any single currency.
During the summit, the bloc announced plans that may advance de-dollarization through multiple strategic projects and initiatives. The focus included facilitating trade in local currencies, exploring a common payments infrastructure, and developing a BRICS grain exchange. Each of these proposals is a step toward greater financial independence and resilience, aiming to shield BRICS countries from dollar-related economic vulnerabilities.
Financial Cooperation and Cross-Border Payment System
One of the most significant outcomes of the summit was the proposal for a BRICS cross-border payment system that aims to enable member nations to process payments in their own currencies without relying on the dollar. Leaders acknowledged that such a system could reduce transaction costs, expedite trade, and enhance financial stability among BRICS nations.
The “BRICS Clear” project envisions an independent settlement and depositary infrastructure for cross-border transactions, operating alongside the existing international financial architecture. This system, though in the planning stages, has the potential to provide a non-discriminatory, inclusive alternative to current structures that often involve U.S. dollar dependency. This new approach would support the bloc’s longer-term goal of establishing an integrated financial environment that mitigates external economic shocks.
Expansion of the New Development Bank
Another prominent focus of the summit was the New Development Bank (NDB), which the BRICS nations are committed to transforming into a new type of multilateral development bank (MDB) for the 21st century. Established in 2014, the NDB has offered a reliable source of project financing for emerging economies. The Kazan Declaration endorsed the further expansion of the bank’s membership, welcoming the new BRICS members to join. This would boost the bank’s lending capacity and influence, helping it support more projects in infrastructure, renewable energy, and technology in emerging markets.
The NDB’s growth will reinforce BRICS’ drive to fund development projects with fewer constraints associated with traditional MDBs, which often rely on the dollar for financing. The expanded NDB is poised to serve as a crucial platform for advancing the bloc’s agenda on financial independence and sustainability.
Establishing a Grain Exchange for BRICS Nations
A notable feature of this year’s summit was the proposal for a BRICS grain exchange, a move championed by Russia. As some of the largest global producers of grains, legumes, and oilseeds, BRICS nations aim to leverage this advantage to create an alternative trading platform. The exchange would focus on agricultural commodities and could eventually expand to include other major commodities essential to global trade.
By creating a grain exchange, BRICS nations seek to increase their food security and reduce their vulnerability to price volatility driven by currency fluctuations. In line with the de-dollarization strategy, this platform would use local currencies for transactions, making it a practical extension of the broader financial independence goals discussed at the summit. Russia’s Grain Exporters Union noted that establishing this exchange would require several years of preparatory work, but if successful, it could become a powerful tool in reducing dependence on dollar-dominated global markets.
The BRICS countries reiterated their commitment to facilitating trade settlements in local currencies, a shift that is expected to benefit small and medium enterprises and bolster regional trade resilience. To encourage this transition, BRICS members committed to strengthening correspondent banking networks within the bloc.
Commitment to Energy and Sustainable Development Goals
Beyond financial matters, the Kazan Declaration highlighted BRICS’ shared commitment to sustainable development and energy transition goals. Recognizing the importance of balancing green initiatives with economic growth, the leaders underscored the need for a flexible approach that respects each nation’s unique conditions and priorities. For example, South Africa emphasized that adaptation efforts should not compromise national growth objectives, while the UAE pointed to its investments in renewable energy.
In light of these considerations, BRICS leaders also explored the idea of creating a voluntary carbon market for the bloc, which could help member countries manage their emissions while avoiding competitive disadvantages. Given that BRICS nations collectively have the potential to issue carbon credits equivalent to around 10 gigatons of CO₂, this initiative could evolve into a viable economic opportunity that aligns with global climate goals.
The Road Ahead: Challenges and Opportunities
While BRICS has made significant strides, many experts see the path to de-dollarization remains fraught with challenges. The U.S. dollar’s global dominance is underpinned by deep financial markets, robust demand for dollar-denominated assets, and established international networks. Although BRICS is gaining traction, its currencies still lack the liquidity and stability offered by the dollar. Moreover, the varying levels of economic development, regulatory environments, and political dynamics within BRICS could present hurdles in fully implementing these initiatives.
Nonetheless, the Kazan Summit marked an important step in BRICS’ journey toward financial independence and multipolarity. With a diversified membership and concrete plans for cooperative projects, the bloc is increasingly positioned to shape a more balanced global economic landscape. As BRICS+ moves forward, its vision of a resilient, equitable system, less tethered to a single currency, remains a driving force that could redefine international trade and finance for years to come.
