How dedollarization, rising investment and infrastructure projects are changing BRICS economies and what this means for business

The main catalyst is the simultaneous strengthening of dedollarization policies in Asia and the growth of practical economic cooperation within BRICS: Beijing is consistently shifting part of trade settlements to the yuan and expanding clearing infrastructure, while concrete export‑investment projects between bloc members are being implemented (for example, industrial supplies and joint investments). This translates strategy into practice and creates new operational realities for companies. The combination of these trends is a compounded challenge to the established currency and infrastructure paradigm: it will not topple the dollar overnight, but it will accelerate market fragmentation and the reconfiguration of financing and supply channels (source — as reports InoSMI; an example of practical cooperation — as notes Atomic Energy 2.0).

How have BRICS countries responded to intensified dedollarization and what are concrete examples of cooperation?

Short answer: BRICS countries are moving dedollarization from declaratory statements to practical instruments — settlements in national currencies, swap lines and clearing mechanisms — while also expanding real trade and investment projects. Details: as reports InoSMI, China actively promotes the internationalization of the yuan by expanding swap lines and clearing centers, and the yuan’s share in trade with partners in the Asia‑Pacific region is growing. The practical side of cooperation is visible in an example: the Russian company RES Engineering presented a titanium supply project for India and already completed the first delivery of pipeline fittings, which required export license approvals and coordination with Indian regulators — as says Atomic Energy 2.0.

"This was a historic event because it is the first delivery of pipeline fittings of safety classes 2 and 3 in Russia’s nuclear industry. The process required obtaining a special SCOMET license from India’s Directorate General of Foreign Trade (DGFT) and coordination with the customer and all project partners." — Anastasia Parnenkova, RES Engineering (in a speech at the BRICS Forum, as reports Atomic Energy 2.0).

What are the systemic implications for the global financial architecture and the role of the dollar?

Short answer: the dollar’s dominance will persist over the next decade, but accelerating dedollarization will lead to a more fragmented currency architecture, higher costs of trade finance and an expanded role for alternative assets (gold, local currency lines). Evidence and facts: as reports InoSMI (summarizing Stratfor’s analysis), the dollar remains the primary reserve currency (about 58% of central bank reserves) and the main currency for settlements in most regions. However, the dollar’s share in trade settlements is falling in some corridors, and central banks have significantly increased gold purchases: gold’s share in reserves rose from about 10% in the late 2010s to roughly 25% now. These shifts raise transaction costs for settlements in nontraditional currencies due to lower liquidity and infrastructure constraints.

Additional indicators relevant for assessing business impact: estimates show the use of the yuan in trade finance and settlements is rapidly growing at the regional level — for example, in some of China’s settlement corridors the share of yuan transactions has risen to levels noticeably above those in 2020 — creating market segments where yuan settlements become the operational norm (the data are compiled and analyzed as reports InoSMI).

What tactical risks and opportunities exist for companies and investors in BRICS?

Short answer: risks — operational and currency fragmentation, higher trade finance costs, the need to navigate licenses and local regulations; opportunities — expanded export contracts, access to large sovereign capital pools and demand for localization of supply chains and technologies.

Risks (evidence and manifestations): * Fragmented settlements raise transaction costs and currency risk — as noted in the analysis of dedollarization (as reports InoSMI). * Operational complexity and regulatory burden for deliveries within new cross‑border projects — example: the need to obtain SCOMET licenses and close coordination with clients for deliveries of high‑tech materials to India (see Atomic Energy 2.0 Atomic Energy 2.0). * Domestic constraints on equipment and engineering increase vulnerability for extractive and industrial companies: in some segments import dependence reaches 100%, making production sensitive to external supply disruptions and sanction risk — as highlighted by the agenda of the Higher Mining Council (see Technosuveren Technosuveren).

Opportunities (evidence and manifestations): * Sovereign wealth funds hold substantial resources that can finance infrastructure and industrial projects in BRICS: the world’s largest funds manage amounts from about $0.9 trillion to over $2 trillion, representing a real capital pool for major deals (overview in "Elite Trader" Elite Trader). * Growing real demand for localization and joint projects — from titanium supplies to establishing joint engineering — opens markets for component suppliers, engineering teams and contractors prepared to operate under local conditions and new regulatory requirements (examples in Atomic Energy 2.0 Atomic Energy 2.0 and Technosuveren Technosuveren). * Skills development programs and training initiatives create opportunities for companies that invest in education and internships to quickly address shortages of qualified engineers and engage in localization projects — practical approaches and university‑business cooperation cases are presented in Forpost Severo‑Zapad Forpost Severo‑Zapad.

Practical recommendations for decision makers in companies (brief and actionable): * Revisit counterparties’ currency policies: analyze the cost of settlements in alternative currencies and factor in expenses for lower liquidity and hedging — this follows directly from assessments of transaction costs under dedollarization (see InoSMI InoSMI). * When entering projects within BRICS, include regulatory compliance and licensing clauses (SCOMET, local DGFT equivalents) in contracts — a lesson from the titanium deliveries to India (see Atomic Energy 2.0 Atomic Energy 2.0). * Consider sovereign capital as a potential partner for financing infrastructure; prepare investment decks and joint‑risk structures aligned with sovereign funds’ horizons and allocation profiles (overview of major funds in Elite Trader Elite Trader). * Invest in localization of components and workforce development: a combination of public‑private programs and corporate internships is already delivering results in engineering and mining sectors (see Technosuveren Technosuveren and Forpost Severo‑Zapad Forpost Severo‑Zapad).

Brief conclusion: dedollarization combined with increased intra‑bloc trade and infrastructure initiatives is turning into "practical dedollarization" — not an instantaneous overthrow of the dollar, but a deep reorganization of operational chains, payment infrastructure and capital sources. This creates both higher transaction risks and new niches for exports, localization and attracting large institutional capital; the companies that succeed will be those that systematically adapt currency strategy, regulatory expertise and workforce policy to these changing conditions.