De-Dollarisation Debate: What BRICS Currency Moves Mean for Forex Traders?

BRICS currencies are becoming more significant in forex markets in 2025. The global economy shifts, investors and traders now need to rethink their traditional, dollar-based strategy.

The BRICS countries, which include Brazil, Russia, India, China, and South Africa, are actively working to reduce their reliance on Western financial systems. This leads to their currencies becoming more significant in international currency trading.

Because BRICS currencies are now traded more frequently, they have a growing influence in forex markets. So what does this evolution mean for forex traders?

Why De-Dollarisation Matters?

De-dollarisation is when the US dollar is experiencing a reduced dependence on international trade, finance, and reserves. So far, the US dollar has been the most widely used currency in central bank reserves and global trade.

However, with growing concerns over sanctions, geopolitical tensions, and US economic policies, other nations are increasingly becoming growing alternatives.

This is where BRICS countries step in. There have been discussions regarding the possibility of a BRICS currency. Then, the currency will be traded within their bloc while bypassing the US dollar.

For the rest of the world, de-dollarisation is an economic or political shift.

However, for traders, this can mean a few things:

• Demand for other currencies, such as the euro or Chinese yuan, may increase.
• Forex markets significantly fluctuate, adding more uncertainty to the markets. Even traders using a regulated forex broker will notice sharper movements than usual.
• Traders need to put more attention into US dollar pairings, such as EUR/USD or USD/JPY.
• As the dollar’s dominance declines, buyers and producers might put more attention into commodities in other currencies.
• Institutional investors and central banks will switch their reserves from the US dollars into other assets or currencies.
• Crypto markets, equity markets, and bond yields will be affected by central banks and institutional investors’ moves.
• Cryptocurrencies become a hedge during uncertain periods.

The Rise of BRICS Currencies

One of the biggest impacts of de-dollarisation is the growing role of BRICS currencies. Countries across the globe had started relying less on the US dollar for reserves and trade. It’s the most strategic and practical way to respond to de-dollarisation.

Western sanctions on Russia had been going deeper into this trend, especially after 2022. Because of that, Russia is now demanding payments in rubles for its gas exports.

India and China had also shifted most of their energy trade with Russia into rupees and yuan instead of dollars.

Due to these shifts in trade behaviour, traders might find a few changes in the forex markets, including:

• More trade was being settled in yuan and rubles
• BRICS central banks started holding more non-dollar assets
• BRICS countries expand their own cross-border payment systems to reduce reliance on Western financial networks

Because of these impacts, trading volumes for currencies like the rupee, ruble, and yuan increased.

For those tracking these shifts via an online trading broker, the changes in volume and volatility will be particularly noticeable.

Altogether, they reflect a global pattern in which local currencies are increasingly replacing the US dollar in international transactions.

Sanctions Backlash Forcing Countries to Develop Alternatives to SWIFT

The US had recently excluded sanctioned countries like Iran and Russia from SWIFT. Iran and Russia are responding differently to the exclusion.

SPFS is one of the alternatives that was born due to SWIFT. Besides SPFS, there’s also CIPS (Cross-Border Interbank Payment System), created by China as another alternative to SWIFT.

Now, it’s offering other countries a way to settle payments in Chinese yuan.

Is De-Dollarisation a Threat or an Opportunity for Forex Traders?

De-dollarisation may make things more complicated for forex traders. However, that doesn’t mean there won’t be opportunities to jump in when de-dollarisation happens.

On the other hand, there are several challenges that traders must navigate carefully during these times.

What Traders Can Do to Face De-Dollarisation?

Diversification Beyond Major Currency Pairs

The effect of de-dollarisation is impacting the global economic ecosystem. When the US dollar is experiencing depreciation, other assets would likely regain value. Diversifying your portfolio during these times would be a great strategy to trade more profitably and spread your risk.

Monitoring Global Developments

One of the reasons why de-dollarisation is crucial for forex traders is that it can make the forex market significantly more complex.

The forex markets are highly influenced by geopolitical and economic events, such as trade agreements, central bank policies, and sanctions.

To respond well, successful traders need to apply a more holistic approach when analysing the market.

Use an economic calendar so you can keep getting updates about the latest news and upcoming events. Combine fundamental and technical analysis, and analyse economic data.

Stay updated on inflation rates and GDP growth to ensure you can adjust your strategies when needed.

Risk Management

The shifts in geopolitical alliances and global economic conditions can make the markets more uncertain. To protect your assets, ensure you have good risk management strategies and anticipate unpredictable movements.

Set take profit and stop loss orders. Use appropriate position sizing according to the market situation. Then, don’t use high leverage when the market is highly volatile.