In 2027, China will take over the presidency of BRICS. Thus, it will have the possibility of relaunching initiatives aimed at reducing dependence on the dollar. Beijing would favor payments in local currencies and the interconnection of financial systems, however no official roadmap has been defined for replacing the American currency.
In brief
- China will take over the BRICS presidency in 2027 and could revive dedollarization initiatives.
- Beijing should favor payments in local currencies and the interconnection of financial systems.
- The BRICS are not considering, at this stage, creating a common currency to replace the dollar.
- The divergent interests between members limit the scope of a coordinated monetary offensive.
- The 2027 summit will tell whether China succeeds in transforming these discussions into concrete infrastructure.
What Beijing could put on the table in 2027
Over the next year, China will host the 19th BRICS summit. Xi Jinping promised to work with other member countries to open a “third golden decade” of cooperation under the terms of the New Delhi meeting. The Chinese president notably mentioned artificial intelligence, governance reform and the digital industry, without mentioning the common currency project.
However, Sergei Ryabkov, Russia’s deputy foreign minister, believes the Chinese presidency would give new impetus to the alliance’s financial plans. He therefore declared :
Disruptive technologies, with artificial intelligence at their core, supply chains, modern payment and finance system, as well as logistics issues are expected to be the focus of the Chinese presidency.
Russia confirms that it will support these priorities. Various issues would thus progress under the leadership of Beijing:
- The interconnection of rapid payment systems used by member countries;
- Settlement of a greater share of trade in national currencies;
- Compatibility between central bank digital currencies;
- Financing in local currencies by the New Development Bank.
These devices could circumvent the dollar in certain transactions without seeking to replace it on a global scale.
BRICS advance without creating a common currency
Such a gradual strategy was confirmed by the New Delhi summit in September 2026. The final declaration further encourages the use of local currencies for trade and investment, while recognizing that no single solution can suit all members. She also wants the BRICS Payment Task Force to study better compatibility between their payment infrastructures.
This orientation does not correspond to the creation of a “BRICS dollar”. Furthermore, India has discarded the existence of a common currency project. New Delhi favors bilateral agreements which allow, for example, certain imports to be paid immediately in rupees, yuan or dirhams.
Sanjay Malhotra, the governor of the Reserve Bank of India, confirmed last August that various solutions remained under study. He therefore explained: “various options are on the table, but they are still at the discussion stage, including central bank digital currencies and the interconnection of rapid payment systems”.
This distinction is crucial. Using more national currencies reduces the demand for dollars for certain commercial transactions. In contrast, a common currency would require shared monetary rules, an issuing institution and mechanisms that help manage economic imbalances between participants.
Internal divisions will limit the offensive against the dollar
China has many reasons for promoting the internationalization of the yuan. Increased use of its currency could reduce its companies’ exposure to U.S. sanctions and would consolidate Beijing’s influence over trade flows in the Global South. Russia and Iran, already subject to Western restrictions, also have an interest in developing alternative circuits.
However, not all BRICS share the same urgency. India, the United Arab Emirates and Brazil have important financial relations with the United States. They want to reduce the costs of international payments without transforming the group into a monetary alliance explicitly hostile to Washington.
BRICS decisions are also based on consensus. The New Delhi declaration, adopted despite differences between several members, illustrates the need to find formulations acceptable to all. This rule reduces the probability that a radical project to replace the dollar will be quickly adopted.
The Chinese presidency could therefore accelerate dedollarization in the most concrete sense: more exchanges in local currencies and better connected payment systems. On the other hand, the scenario of a common currency capable of directly competing with the dollar remains distant. The challenge of the 2027 summit will be to see whether Beijing transforms current discussions into infrastructure that can be used on a large scale.
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