BRICS Nations Cut US Dollar Use In Trade By 67%

The BRICS nations—Brazil, Russia, India, China, and South Africa—have made a substantial move to decrease their dependence on the US dollar in trade transactions, instead opting to increase the use of their local currencies. This strategic shift is aimed at enhancing financial sovereignty and reducing exposure to external economic pressures, particularly those stemming from US trade policies. The use of the US dollar in trade among BRICS countries has been reduced to approximately one-third of its previous level, marking a significant change in their economic strategy.

This initiative was first proposed at the Kazan summit held last year. The goal is to strengthen economic cooperation and resilience within the BRICS bloc by reducing the impact of US trade policies, such as tariffs and sanctions, which have historically affected their economies. For example, Brazilian exports to the United States are subject to 10 percent tariffs, illustrating the potential benefits of diversifying trade currencies.

The shift towards local currencies is not only a response to external pressures but also a strategic move to strengthen intra-BRICS economic ties. The surge in the use of national currencies in trade reflects a growing trend towards regional economic integration and self-reliance. This trend is expected to continue as BRICS nations work towards a more balanced and resilient global economic order. The move is part of a broader effort to create a new global alignment that reduces dependence on the US dollar and promotes the use of local currencies in international trade.

The BRICS nations have long advocated for a more multipolar world, where economic power is not concentrated in the hands of a few. By increasing the use of their local currencies in trade, they are taking a significant step towards achieving this goal. This move is expected to have far-reaching implications for the global economy, as it challenges the dominance of the US dollar and promotes the use of alternative currencies in international trade. The shift towards local currencies is also expected to enhance financial stability and reduce the risk of currency fluctuations, which can have a destabilizing effect on economies.

In summary, the BRICS nations have taken a significant step towards reducing their reliance on the US dollar in trade transactions. By increasing the use of their local currencies, they are promoting economic cooperation and resilience within the bloc. This move is part of a broader strategy to create a more balanced and resilient global economic order, where economic power is not concentrated in the hands of a few. The shift towards local currencies is expected to have far-reaching implications for the global economy, as it challenges the dominance of the US dollar and promotes the use of alternative currencies in international trade.