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Financial Integration of the BRICS Advances with Local Currencies, Reducing Dependence on the Dollar and Pressuring Countries to Update Payment Systems, According to Analysis Released This Tuesday (09) on the Fast Money Program.
The BRICS countries are intensifying efforts to increase the use of local currencies in international transactions, a movement that gained new momentum according to analysis presented this Tuesday (09) by economist and sociologist César Bergo, a professor at the University of Brasília, during his participation in the Fast Money program on CNBC.
As highlighted, the advancement of direct settlements reduces costs, decreases dependence on the dollar, and pressures for regulatory and technological adaptation among national financial systems.
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The authority points to increased efficiency, reduced currency risk, and the infrastructure challenges necessary to ensure interoperability between payment platforms.
These factors, the professor explained on the program, help to understand why Brazil, Russia, and China are accelerating the design of their own compensation system.
Payments in Local Currencies and Cost Reduction
Bergo stressed that Brazil already uses similar mechanisms within Mercosur, which facilitates the transition to a broader model within the BRICS.
He noted that the country maintains settlement agreements with Argentina, Uruguay, and Paraguay, while China operates similar arrangements with over 140 trading partners, and Russia conducts direct transactions in Chinese currency.
According to the economist, the expansion of this type of agreement reflects a structural change in global trade.
He explained that, in the traditional model, exporters and importers need to convert their currencies to dollars, facing high spreads and frequent fluctuations.
At this point, he noted that direct operation eliminates steps and reduces costs for businesses on both sides.
“Negotiation becomes immediate, without the purchase of expensive dollars and subsequent cheap sales,” he stated during the program.
Furthermore, he analyzed that the dollar remains the main international reference, but the search for lower exposure to the U.S. monetary policy cycle and American geopolitical decisions is driving alternatives.
The trade dispute between Washington and Beijing, coupled with tariffs imposed in recent years, reinforces the perception that the center of gravity of global trade is shifting.
U.S. Reactions and Impact on Global Hegemony
Commenting on the irritation demonstrated by Donald Trump in recent moments, Bergo pondered that the advancement of transactions in local currencies does not represent an attack on the dollar.
For him, it is a natural process of adaptation to the needs of emerging countries.
He noted on Fast Money that it is common for headlines to suggest a rupture, but insisted that the dollar is not at risk of extinction.
Even so, he emphasized that trading partners tend to prioritize arrangements that provide them with lower volatility and greater predictability.
The professor evaluated that U.S. concern also derives from China’s economic growth and the expanding influence of the BRICS.
“The United States needs to observe this movement carefully, but it is an evolution that is here to stay,” he concluded.
How Brazilian Companies Will Be Affected
In practice, Brazilian companies should perceive direct gains in efficiency.
Bergo explained that today, when signing a contract with a Chinese buyer, for example, the exporter needs to convert reais into dollars and deal with distinct rates, such as the commercial rate, the tourist rate, and the Ptax, a reference defined by the Central Bank.
When receiving funds from abroad, they face the reverse process, also subject to costs and spreads.
He detailed that, with direct compensation, the Brazilian bank sends the amount in reais to the financial institution abroad, which automatically performs the conversion to the local currency of the partner.
The professor stated that this dynamic brings international trade closer to the model of instant transfers.
“The speed of payment is decisive. This resembles what we do with Pix,” he commented.
Technical Obstacles and Interoperability Challenges
Explaining the technical hurdles, Bergo recalled that international operations currently depend on the SWIFT system, which uses standardized codes and global intermediaries.
However, countries like China and Russia are already testing their own arrangements, especially after sanctions that hindered Russia’s access to traditional networks.
As he told the channel, direct systems between banks reduce vulnerabilities and enhance the security of transactions.
Despite advancements, he noted that it will be necessary to harmonize rules, technological standards, and messaging protocols.
Interoperability between national systems remains one of the most complex steps for the consolidation of the new model.
What Companies Need to Do Now
When asked about immediate adjustments in Brazilian companies, Bergo stated that there are no drastic changes in the short term.
“Banks will make the adaptation. Companies will continue with their normal flows,” he observed, adding that financial managers should remain alert to opportunities generated by the potential cost reduction.
Pix as a Model of Innovation and Global Integration
During the interview, the professor once again mentioned Pix as a demonstration of the technological capability of the national financial system.
He reported finding establishments in France that already accepted the Brazilian payment method, an example of potential future integration.
For Bergo, experiences like this reinforce that instant settlement solutions tend to expand globally, contributing to the adoption of local currency systems.
Geopolitical Role of the BRICS and Impact on Global Trade
Bergo also reflected on the geopolitical impact of the group.
According to him, the BRICS has become a strategic space for emerging countries and today accumulates requests for entry.
He stated on Fast Money that the joint actions of China, India, Brazil, and Russia strengthen the bloc and increase its political weight, especially at a time of global repositioning.
In the professor’s view, the BRICS serves as an alternative to traditional forums, such as the UN and OAS, by building its own agenda and supporting its members through instruments like the group’s Development Bank.
This environment, he concluded, favors the consolidation of independent financial mechanisms and new models of cooperation.
Finally, Bergo highlighted that the ongoing monetary and technological integration is set to redefine trade flows and payment standards.
As the system matures, the economist assesses that the BRICS becomes a key player in shaping the next stage of international finance.
In light of this transformation, to what extent will countries outside the bloc accelerate their own initiatives to avoid losing relevance?
Eis que vemos o Império Estadunidense ruir.
Asistimos a historia ser escrita, cotidianamente.
EUA já nao tem esse poder todo mais , o problema na Venezuela é um pretexto da tua decadência, a EUR já era , o grande exemplo é a indústria automobilística Chinesa , quem nao se aliar a ela vai quebrar!!!
Vamos ver quem correrá o risco de trocar dólar por real ou yuan, mantendo-os como ativos de investimentos…?