In the fast-evolving landscape of global economics, few alliances have sparked as much intrigue—and debate—as BRICS. Comprising Brazil, Russia, India, China, and South Africa, this bloc of major emerging economies is rapidly gaining clout in 2025. For Australians, the rise of BRICS is more than just a headline; it’s a seismic shift that could redefine trade, investment, and Australia’s position on the world stage.
BRICS in 2025: Expansion, Ambition, and Agenda
BRICS has always been about more than just economic cooperation. In 2025, the alliance has expanded its ambitions, inviting new members (including Saudi Arabia and Egypt) and launching initiatives designed to challenge Western-dominated institutions like the International Monetary Fund (IMF) and the World Bank. Their recent summits have focused on these key priorities:
- Dedollarisation: Pushing for trade settlements in local currencies, reducing dependence on the US dollar.
- Infrastructure investment: Expanding the New Development Bank (NDB) to fund projects across the Global South.
- Technology collaboration: Enhancing cooperation in digital payments, AI, and green tech.
For Australia, this means a growing number of trade partners are exploring alternatives to Western financial systems and currencies—a potential game changer for exporters and investors.
Trade and Investment: Opportunities and Risks for Australia
Australia’s economic fortunes have long been tied to China, the largest BRICS economy and our leading trading partner. However, the broader BRICS bloc is now shaping new patterns of trade and investment:
- Resource demand: India’s energy needs and China’s manufacturing resurgence continue to drive demand for Australian iron ore, LNG, and critical minerals.
- Sanctions and geopolitics: With Russia facing Western sanctions, BRICS is fostering alternative payment systems—potentially bypassing SWIFT—and creating new opportunities for Australian agribusinesses willing to navigate this evolving landscape.
- South-South trade: The BRICS push for greater intra-bloc trade could mean more competition for Australian exports in Asia and Africa, but also new avenues for collaboration, especially in agtech and renewable energy.
In 2025, Australian firms are watching closely as BRICS explores a common digital currency and ramps up NDB lending. These moves could lower transaction costs and reduce currency risk, but also introduce regulatory complexity and competitive pressure.
Global Finance and the Australian Dollar: A Shifting Landscape
Perhaps the most significant BRICS development for Australia is the bloc’s push to reduce global reliance on the US dollar. With the NDB expanding its lending in local currencies and BRICS nations settling more trade in yuan, rupees, and reals, the global financial ecosystem is fragmenting:
- Currency diversification: Australian exporters may need to manage exposure to a wider range of currencies as more partners move away from USD settlements.
- Financial markets: As BRICS nations attract more foreign investment and establish alternative payment rails, Australian banks and investors are reevaluating risk and opportunity in emerging markets.
- Reserve status: While the Australian dollar remains a stable regional currency, any major shift away from the greenback could have ripple effects—altering exchange rates, investment flows, and even the cost of capital.
In 2025, the Reserve Bank of Australia and Treasury are monitoring these trends closely, exploring new trade agreements and financial safeguards to maintain resilience amid global uncertainty.
Conclusion: Why BRICS Should Be on Every Australian’s Radar
BRICS is no longer just an acronym in the background of global finance—it’s an active, ambitious coalition with a growing ability to shape policy and markets. For Australians, the rise of BRICS presents both challenges and opportunities: from shifting trade flows and currency risks to fresh avenues for collaboration in infrastructure, technology, and green finance.
Keeping a close watch on BRICS developments is now a must for Australian businesses, investors, and policymakers. As the world rebalances, those who adapt fastest will be best placed to thrive in this new era of multipolar finance.
