The BRICS-linked Cross-Border Interbank Payments System (CIPS) has expanded across 185 countries, allowing international payments in Chinese yuan without using the U.S. dollar, according to data from the New Development Bank (NDB). CIPS was launched by China and managed by its central bank as “a real alternative for global trade settlements.” At the Shanghai Oil and Gas Exchange, liquefied natural gas contracts are now priced for and paid in yuan. Same thing with soybeans from the Shenzhen Qianhai Joint Trading Center. China has allegedly already signed 40 settlement agreements with other countries, with total settlements through CIPS hitting 52 trillion yuan earlier this year, equal to 58% of China’s total cross-border transactions, a figure that tops the dollar in some measures. Trade between China and Russia has been settled in local currencies for three straight years, covering 95% of their total trade volume. Still, not every country has joined the yuan system. Europe, North America, and Australia have kept their distance, while developing economies in Africa, Asia, and Eastern Europe are using CIPS more frequently, especially for Belt and Road Initiative (BRI) loan repayments. China expands yuan use through CIPS and new stablecoin Meanwhile, US president Donald Trump has rejected neoliberal globalization, saying it will restore American dominance. His policies have isolated Washington’s allies and left the European Union struggling. Global tensions have grown with the Ukraine war and economic pressure between China and the U.S., creating instability not seen in decades. At the United Nations General Assembly on September 27, BRICS foreign ministers issued a joint statement denouncing U.S. tariffs, calling them a “proliferation of trade-restrictive actions.” Brazilian President Lula da Silva called Washington’s import taxes “tariff blackmail” and urged BRICS nations to close ranks. Around the same time, China announced a yuan-pegged stablecoin called AxCNH at the 10th Belt and Road Summit, intended for cross-border settlements linked to infrastructure projects. The stablecoin launched in Kazakhstan, showing Beijing’s push to take the yuan international and challenge the dollar’s global dominance. Meanwhile, the NDB is diversifying its financing. Since 2015, the NDB has issued loans in yuan and rand. It now plans to roll out rupee-denominated bonds by 2026, targeting between $300 million and $500 million in three- to five-year tranches. This fits the bloc’s larger plan to reduce dependence on the dollar and rely on member-state currencies instead. Trump escalates rhetoric against BRICS President Trump has repeatedly criticized the bloc. In a Truth Social post in July, he said: “When I heard about this group from BRICS, six countries, basically, I hit them very, very hard. And if they ever really form in a meaningful way, it will end very quickly. We can never let anyone play games with us.” Trump pledged to protect the dollar’s reserve-currency status and said he would never allow a U.S. central bank digital currency. On July 6, he announced 100% tariffs against any country adopting what he called the “Anti-American policies” of BRICS . BRICS officials have denied that the group is anti-U.S. Brazil, under Lula’s leadership, dropped its earlier plan for a shared BRICS currency but moved forward with BRICS Pay, a cross-border settlement platform designed for local-currency trade among members. The bloc also expanded in 2024, adding Iran and Indonesia, and has continued meeting under its multilateral framework. During the BRICS summit in Brazil, leaders issued indirect criticism of U.S. military and trade policies, reinforcing their intention to build independent payment and financial systems outside Western control. Sign up to Bybit and start trading with $30,050 in welcome gifts
