India, China, and BRICS Shift Away from US Dollar Amid Growing Global Pressure

Growing global pressure against US financial dominance has prompted major economies, including India, China, and BRICS countries, to gradually reduce their reliance on the US dollar.

For decades, the US dollar has dominated global trade, foreign exchange reserves, and commodity markets. However, this long-standing supremacy is now facing unprecedented challenges as countries across Asia, Africa, Latin America, and the Middle East question the wisdom of depending on a single currency controlled by one nation.

China, Russia, and India are leading this shift. Over the past year, India has sold more than $50 billion worth of US Treasury bonds, reflecting a 21 percent decline in its holdings. This marks the largest annual reduction in four years. Similarly, China sold approximately $71 billion in US debt between October 2024 and October 2025.

Collectively, BRICS nations reduced their US Treasury holdings by $29 billion in just one month, signaling a coordinated but quiet shift in reserve management strategies.

Analysts point to growing vulnerabilities in the US financial system. US government debt has exceeded $38 trillion, interest rate volatility has increased, bond prices have fallen, and borrowing costs have surged. Geopolitical risks have further intensified concerns, particularly after Western sanctions froze Russia’s dollar reserves, demonstrating how dollar-denominated assets can be used as a political tool.

As a result, countries are diversifying their reserves away from a single currency. Gold has once again become central to foreign exchange reserve strategies, as it carries no default or sanctions risk and offers stability during geopolitical uncertainty.

At the same time, international trade and payment systems are increasingly moving beyond the dollar. China is conducting transactions in yuan with more than 40 countries, while India has established special rupee accounts with banks in 20 countries.

India has also proposed a BRICS-based digital currency network, while cross-border payment experiments under “Project mBridge” are being conducted using central bank digital currencies backed by gold and national currencies.

Experts agree that the era of the dollar’s uncontested dominance is coming to an end. JP Morgan’s Joyce Chang noted that while the US dollar will remain a major global currency, it is unlikely to retain its position as the sole dominant currency in the global financial system.