O’Neill Reopens the BRICS Currency Debate as Dollar Dominance Faces Pressure

Jim O’Neill, the economist who coined the term BRICS, has reopened the debate over whether the expanded BRICS+ bloc could one day launch a shared currency to rival the United States (US) dollar, arguing that recent geopolitical shifts may be changing the calculation.

Writing from London, O’Neill says he had long dismissed the idea. Historically, major reserve currencies have required fully convertible capital accounts, allowing money to move freely in and out of issuing countries. A genuine shared currency, such as the euro, also demands a supranational central bank, meaning members must surrender monetary policy independence. In that light, he argues, it is difficult to imagine India ceding central bank authority in a bloc that includes China, or China abandoning capital controls that limit global use of the renminbi.

Yet O’Neill now sees reasons to question his earlier scepticism. Chinese President Xi Jinping has signalled interest in expanding the renminbi’s global role, while multiple BRICS+ leaders have expressed frustration with the dollar’s persistent dominance. He also points to what he calls the “Trump effect”, arguing that aggressive US tariff policies and attacks on domestic institutions risk weakening confidence in the dollar’s stewardship.

With the US accounting for roughly 25% of global GDP, O’Neill notes that the remaining 75% of the world economy has scope to deepen trade ties independently. He suggests that rather than pursuing a fully-fledged reserve currency, BRICS+ members might explore a more limited trade settlement currency, potentially structured as a GDP-weighted basket.

Digital payment technologies could further shift the balance. While dollar-based stablecoins may entrench US influence, O’Neill argues the same tools could help BRICS+ build alternative payment rails. Whether the idea proves viable or remains aspirational, he concludes, will become clear in the years ahead.

The Common Sense has previously reported on the potential for the US dollar to be unseated as the world’s reserve currency (here, here, here, here, and here) and that a coordinated move to replace it by another currency (or currencies) is another front in the struggle for global dominance between China and the US.