BRICS Currency vs USD: The Accelerating Shift in Global Reserves
The conversation around de-dollarization has shifted. What was once a topic reserved for dinner party speculation and geopolitical commentary is now grounded in measurable, quarter-over-quarter data. The US dollar remains the world’s dominant reserve currency, but its share of global reserves, transaction volumes, and trade settlement is contracting at a pace that demands attention from anyone managing cross-border wealth.
George Yeo, the former Foreign Minister of Singapore, captured the underlying dynamic plainly:
“The very actions of the US are causing the momentum for de-dollarization to increase. I’m quite sure that among the big countries, China, Russia, and others, especially those in BRICS, there will be a push for an alternative system. Not to replace the current system, but to tell the US, ‘Look, don’t overplay this, because if you do, we have an alternative.’ It’s not as good, but we won’t be hostage to the current system.”
George Yeo, Former Foreign Minister of Singapore
That alternative is no longer theoretical. It is being built, tested, and deployed.
The Reserve Currency Data
The numbers tell a clear story. According to the IMF’s Currency Composition of Official Foreign Exchange Reserves (COFER), the US dollar’s share of allocated global reserves fell to 56.77% in Q4 2025 - the lowest level since 1995. This is a structural decline, not a quarterly fluctuation; the dollar’s share has fallen roughly 10 percentage points over the past two decades.
The transaction data is equally striking. SWIFT currency tracking data shows the dollar’s share of global payment transactions dropped from 47.5% in December 2025 to 43.8% in March 2026 - the largest quarterly decline on record. In the same period, the Chinese yuan’s share of SWIFT transactions grew from 4.7% to 6.2%, a meaningful jump for a currency that barely registered on the platform a decade ago.
These are not abstract indicators. They reflect real decisions by central banks, sovereign wealth funds, and institutional treasuries to hold and transact in a broader basket of currencies.
BRICS+ Expansion and Economic Weight
The bloc driving much of this shift has grown considerably. BRICS+ now comprises 11 full members: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, and the UAE. An additional 10 nations hold partner status.
The combined economic weight is difficult to ignore. BRICS+ members represent over 40% of global GDP on a purchasing power parity basis, 48.5% of the world’s population, and roughly 50% of global oil production. The inclusion of Saudi Arabia, the UAE, and Indonesia in recent expansion rounds was not incidental - it brought the world’s largest energy producers and one of Southeast Asia’s largest economies into a bloc that now has the scale to build parallel financial infrastructure.
Yeo’s observation on the underlying motivation remains apt:
“The US has 800 military bases around the world. Who is funding those bases? US taxpayers, maybe some others. But the US can print money, and when they print money to finance military bases, in a sense, all of us, in Singapore, in China, and in Europe, are being taxed to finance the security the US provides.”
George Yeo, Former Foreign Minister of Singapore
That implicit tax is precisely what BRICS+ members are seeking to reduce.
The Infrastructure: mBridge and BRICS Pay
De-dollarization requires more than political will; it requires settlement infrastructure. Two projects are building it.
mBridge, the cross-border central bank digital currency (CBDC) platform, has surged past $55.5 billion in cumulative transaction volume across more than 4,000 transactions. Participating central banks include Hong Kong, Thailand, the UAE, Saudi Arabia, and mainland China. The digital yuan accounts for approximately 95% of settlement volume on the platform. Notably, the Bank for International Settlements (BIS) exited the mBridge project in October 2024, a move widely interpreted as a response to Western concerns about the platform’s potential to circumvent dollar-based settlement systems.
BRICS Pay, the bloc’s consumer-facing payment network, is targeted for deployment at the September 2026 New Delhi summit. If delivered on schedule, it would create a direct payment corridor between BRICS+ member nations that bypasses SWIFT entirely.
These are not pilot programmes. They are operational infrastructure projects backed by central banks representing nearly half the world’s population.
Regional De-Dollarization Hotspots
The shift is not uniform, but regional patterns are accelerating.
China-Russia bilateral trade has moved almost entirely off the dollar. According to official figures, 99.1% of trade between the two countries is now settled in national currencies - the yuan and the rouble. This is a complete structural shift from pre-2022 patterns, when the dollar dominated Sino-Russian trade settlement.
Middle East non-dollar settlement grew from 18% to 31% of regional cross-border transactions between December 2025 and March 2026. The inclusion of Saudi Arabia and the UAE in BRICS+ has accelerated this trend, particularly in energy contracts that were historically denominated exclusively in dollars.
Asia non-dollar settlement is expanding rapidly, with intra-ASEAN local currency settlement now above 25% of trade, up from less than 10% in 2019. Bilateral currency swap agreements between ASEAN nations, China, and India are accelerating this shift.
Yeo identified this dynamic clearly when he noted the resentment generated by the weaponization of dollar-based systems:
“You are saying that your enemy, who was an old friend, must now be my enemy, and people resent it.”
George Yeo, Former Foreign Minister of Singapore
That resentment is now translating into infrastructure.
Central Bank Gold Accumulation
Alongside currency diversification, central banks are accumulating gold at a historic pace. The World Gold Council’s full-year 2025 report confirms that central banks purchased between 863 and 1,237 tonnes in 2025, marking the third consecutive year of purchases above 1,000 tonnes.
BRICS+ nations now hold more than 6,000 tonnes of gold - representing 17.4% of global central bank reserves, up from 11.2% in 2019. The largest holders are Russia (2,336 tonnes), China (2,298 tonnes), and India (880 tonnes).
Gold’s share of total global reserves has risen to approximately 30% in 2025, up from 13% in 2017. This is not a speculative trade. Central banks are systematically reducing dollar exposure and replacing it with an asset that carries no counterparty risk and cannot be frozen by sanctions.
The pattern is consistent: accumulate gold, build non-dollar settlement infrastructure, and reduce dependence on SWIFT. Each reinforces the other.
What This Means for Wealth Management
For institutions, wealth managers, and family offices operating across multiple jurisdictions, these shifts have practical implications. Multi-currency settlement infrastructure is no longer a convenience - it is becoming a necessity for clients with exposure to BRICS+ economies, commodity markets, or cross-border trade flows.
Aerapass is licensed in six jurisdictions - Hong Kong, Singapore, Switzerland, Australia, Canada, and the USA - with multi-currency corridors built into its exchange infrastructure and cross-border payment capabilities spanning 120+ countries. As reserve diversification accelerates and non-dollar settlement volumes grow, the ability to hold, convert, and settle across currency pairs without friction becomes a core operational requirement.
Yeo summarized the broader trajectory in terms that apply equally to sovereign reserve managers and private wealth advisors:
“I’m surprised that, in the last few months, at every dinner and social gathering, people talk about de-dollarization. This is not good for the US.”
George Yeo, Former Foreign Minister of Singapore
The alternative, as Yeo noted, “is not perfect, but it’s better than being hostage to a system that is increasingly weaponized.”
The data suggests the world agrees.
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The content on this page is produced by Aerapass for general informational purposes only and does not constitute financial advice, investment advice, or any other form of professional advice. Aerapass is a technology platform provider serving financial institutions, wealth managers, and fintech companies. Before making any financial decision, you should consult with a qualified, licensed financial advisor who can take your individual objectives and circumstances into account.
