The BRICS bloc has just announced the shocking announcement that it would be backing down on its fights against Dollar. For the past few months, BRICS has been pushing out numerous different policies and it almost seems like they were making progress.

But in a recent statement, the Kremlin's spokesperson, Dmitry Peskov, announced the abandonment of a single currency for the BRICS bloc, saying that the plan to do so is "not possible" at this stage.

This came as a surprise given how the dethroning the dollar has always been one of the focal points of the bloc in the first place, and how far and close it has come to achieve its lofty goals.

This goal is also close to the hearts of many of the BRICS countries, like Russia who has suffered a sanction by the U.S. And China, who is the bitter rival of the Americans.But today, the hopes for a common currency are collapsing, as the BRICS are no longer in a position to challenge the dollar’s hegemony in a unified manner.

Coincidence with the election of Trump

Coincidentally, the strategic retreat for BRICS happened shortly after the re-election of President Donald Trump.

While the mission of De-dollarisation started as an effort of the bloc to assert its collective power in the face of American influence, it seems that their initial vision has shifted with the ever evolving economic and geopolitical events.

And Donald Trump's return to the White House might have a huge play to part in this decision. Given Trump's past cordial relationship with Russia's Vladimir Putin, could it be that Russia no longer sees the U.S as a threat now that Trump is the leader of the United States?

Could we also see the easing of some sanctions on Russia given the friendship between the two political leaders?

Amidst all this confusion, BRICS has also announced that it no longer aims to actively turn away from the dollar in its trade exchanges. According to Vladimir Putin, the group no longer plans to “do without the greenback” in international transactions.

This turnaround, once again, seems intimately linked to political changes in the United States and could reflect a strategy of appeasement toward the Trump administration.

Decision that could divide the bloc

But it seems that not everyone might be on board with this decision. Brazil, for instance, has already hinted that it may independently pursue certain monetary diversification efforts, even in the absence of collective support.

This refocusing around the dollar could therefore complicate the bloc’s unity, as each country seeks to defend its own interests in an unstable economic context.

With the abandonment of their single currency project and a return to the dollar in exchange, the BRICS are engaging in a reconfiguration of their economic strategy.

While this turnaround could inevitably weaken their credibility regarding dollarization, it could offer additional maneuvering room for each member to adjust its monetary policy to its national priorities.

It remains to be seen whether the bloc will be able to reinvent itself around other common initiatives and avoid fragmentation that would weaken its voice on the international stage.