Goa, September 26, 2025 In a landmark declaration at the 17th BRICS Summit held on the sun-kissed shores of Goa, leaders from Brazil, Russia, India, China, South Africa, and the bloc's expanded roster of 10 new members unanimously backed initiatives to accelerate de-dollarisation, emphasizing trade settlements in local currencies to reduce reliance on the US dollar. Hosted by India under the theme "Building a Multipolar World," the two-day conclave culminated Friday with a joint communique hailing "mutual settlements in national currencies" as a cornerstone of equitable global trade, potentially reshaping $6 trillion in annual intra-BRICS commerce. At the forefront was India's bold proposal for a gold-backed digital payment system—dubbed "BRICS GoldLink"—designed to provide stability and sovereignty in cross-border transactions, drawing applause from Russia and China while tempering expectations from Western observers.
The summit, attended by heads of state including Indian Prime Minister Narendra Modi, Brazilian President Luiz Inácio Lula da Silva, Chinese President Xi Jinping, Russian President Vladimir Putin (via video link due to scheduling conflicts), and South African President Cyril Ramaphosa, marked a tangible shift from rhetoric to roadmap. With BRICS now representing 46% of the global population and 35% of world GDP, the Goa Declaration outlined concrete steps: a pilot program for 50% of bilateral trade in local currencies by 2027, enhanced interoperability of central bank digital currencies (CBDCs), and the establishment of a BRICS Trade Council to monitor progress. "The era of dollar dominance is waning, and BRICS is leading the charge for a fairer financial order," Modi declared in his keynote address at the iconic Dona Paula Viewpoint, flanked by the Arabian Sea.
India's Gold-Backed Proposal: A Hedge Against Volatility
Central to the summit's momentum was India's innovative pitch for BRICS GoldLink, a blockchain-based payment platform backed by a basket of gold reserves and member currencies. Unveiled by Modi during a closed-door session on Thursday, the system aims to facilitate instant, low-cost settlements for everything from commodities to services, circumventing SWIFT and other dollar-centric networks. Drawing on India's vast gold holdings—over 800 tonnes in official reserves—and its expertise in UPI (Unified Payments Interface), the proposal envisions a "neutral anchor" where transactions are partially collateralized by physical gold stored in a proposed BRICS Vault in Mumbai.
"We propose BRICS GoldLink as a stable, sovereign alternative—gold-backed for trust, digital for efficiency," Modi elaborated, citing the platform's potential to slash transaction costs by 40% and mitigate forex risks for emerging economies. The idea builds on earlier BRICS explorations of a "Unit" currency, a gold-pegged digital token floated by Russia in 2024, but tailors it to India's priorities: avoiding a single BRICS currency that could invite geopolitical friction. Finance Minister Nirmala Sitharaman, who led technical discussions, highlighted pilots with Russia (for oil imports) and China (for electronics trade), projecting $500 billion in annual volume by 2030.
The proposal garnered swift endorsements. Putin praised it as "a pragmatic step toward multipolarity," aligning with Russia's push for commodity-backed finance amid Western sanctions. Xi echoed support, linking it to China's e-CNY CBDC, while Lula advocated integrating Brazil's real for agricultural exports. New members like Egypt and the UAE, resource-rich nations wary of dollar fluctuations, voiced enthusiasm, with UAE's Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan calling it "a bridge to inclusive growth."
De-Dollarisation Momentum: From Talks to Trade
The Goa Summit's focus on local currency trade reflects years of simmering discontent with the dollar's "exorbitant privilege." Intra-BRICS trade has surged 60% since 2022, yet 80% remains dollar-denominated, exposing members to US interest rate hikes and sanctions risks. The communique commits to doubling non-dollar settlements to 40% by 2026, building on bilateral swaps like the India-Russia rupee-rouble mechanism, which handled $50 billion in 2024-25.
Key outcomes include:
BRICS Pay Expansion: A unified app for cross-border payments, integrating India's UPI, China's WeChat Pay, and Russia's Mir, with gold as a settlement backstop.
Reserve Pooling: A $100 billion BRICS Contingent Reserve Arrangement (CRA) augmented by gold contributions, offering liquidity without IMF strings.
Tech Integration: Joint development of a CBDC bridge, piloted by India and South Africa, to enable atomic swaps between rupees and rands.
Analysts hailed the progress but noted hurdles. "While symbolic, this isn't a dollar death knell—yet. Implementation will test BRICS cohesion," said Eswar Prasad, Cornell University economist and former IMF official. The US Dollar Index dipped 0.5% Friday on the news, while gold prices climbed to $2,650 per ounce, underscoring market jitters.
Geopolitical Ripples and Domestic Backing
The summit unfolded against a backdrop of global tensions, with Putin’s virtual address decrying "unilateral sanctions" and Xi warning of "hegemonism." Modi, balancing India's Quad ties with the US, reiterated de-dollarisation as "reform, not replacement," focusing on "inclusive institutions" like WTO reforms. Back home, the proposal aligns with India's "Atmanirbhar Bharat" ethos, with the RBI already testing gold-linked digital rupees.
Opposition voices in India, including Congress leader Rahul Gandhi, welcomed the move but urged safeguards for small exporters. "Gold-backing is smart, but we must ensure it benefits farmers and MSMEs, not just big corps," Gandhi posted on X. Internationally, the IMF's Kristalina Georgieva cautioned against "fragmentation risks," while US Treasury Secretary Janet Yellen dismissed it as "aspirational."
Looking Ahead: A Multipolar Financial Future?
As leaders departed Goa—Modi bidding farewell with a traditional Konkani feast—the summit leaves a blueprint for BRICS' financial autonomy. With the next gathering slated for Brazil in 2026, implementation will be key. "Goa has planted the seeds of a new order—one where gold and local pride outshine greenbacks," Modi reflected.
For BRICS nations, the stakes are existential: escaping dollar dependency could unlock trillions in trade, but missteps risk internal rifts. As gold gleams brighter in global reserves—BRICS holds 20% of the world's total—the Goa accord signals a seismic shift, one transaction at a time.
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