bricscurrency

BRICS Nations Abandon US Dollar in Trade, Embrace China-Russia Deal

  • BRICS nations Russia and China have eliminated Western currencies, including the US Dollar, from their bilateral trade, achieving a $200 billion trade turnover ahead of schedule. Payments are now made using Rubles and Yuan, with Russia’s Prime Minister Mikhail Mishustin revealing a move from 20% to complete exclusion of third-country currencies in mutual settlements.

  • In October, Russia and China signed a $25 billion deal in their local currencies focusing on the food and energy sectors, reinforcing their trade ties post-Western sanctions. Mishustin emphasized the development of favorable conditions for commercial firms in both markets, highlighting a significant joint agenda between the two countries.

  • Russia is spearheading an initiative within BRICS to boost trade relations, with Russia and India already conducting over $40 billion in trade using local currencies. Russian Finance Minister Anton Siluanov advocated for stronger financial cooperation within BRICS at the Russia-China Financial Dialogue, including the creation of an independent BRICS payment system.

In a world where economic alliances are constantly evolving, BRICS nations are making a bold move. Russia and China, two prominent members of BRICS, have decided to turn their backs on the US dollar and embrace their own currencies for bilateral trade. This strategic pivot is not just a financial statement but a demonstration of the strengthening ties and growing independence within the BRICS bloc.

BRICS Nations Bid Farewell to the Dollar

  • BRICS members Russia and China have ceased using the US dollar in their trade dealings.

  • Russian Prime Minister Mikhail Mishustin reports a booming trade turnover of $200 billion between the two nations.

  • Payments are now conducted almost exclusively in rubles and yuan, marking a significant shift from just 20 percent in 2020.

  • The drive towards using national currencies is a direct result of the BRICS de-dollarization mission.

Strengthening Russia-China Trade Relations

  • Russia and China have been concluding multiple deals in local currencies, particularly in the food and energy sectors.

  • A landmark $25 billion deal was signed to bolster trade in these essential commodities, employing local currencies for transactions.

  • These moves come as a response to Western sanctions against Russia, further solidifying the BRICS stance on de-dollarization.

  • Commercial firms in both countries are enjoying favorable conditions, reflecting a robust joint strategy for economic cooperation.

Russia Advocates for Increased Intra-BRICS Trade

  • Russia is not only focusing on trade with China but is also advocating for more commerce within the entire BRICS bloc.

  • Trade with India has already seen settlements worth $40 billion in local currency.

  • The push for intra-BRICS trade is part of a larger strategy to strengthen economic ties and reduce dependency on Western financial systems.

Proposing a Unified BRICS Payment System

  • Russian Finance Minister Anton Siluanov highlighted the need for financial cooperation within BRICS at the Russia-China Financial Dialogue forum.

  • He proposed the development of a BRICS payments system, independent of Western infrastructure.

  • The envisioned system would better serve the goals and needs of individual BRICS countries.

By shedding the reliance on the US dollar, BRICS nations like Russia and China are charting a new course in global trade dynamics. This shift not only underscores the growing financial clout of these countries but also signals a new era where economic partnerships are increasingly dictated by strategic interests over traditional alliances.

Examiner

Source: examiner.com