BRICS members are advancing the de-dollarization agenda by using local currencies for cross-border transactions and not the US dollar. The alliance is aiming to reduce dependency on the greenback and dim its prospects in the currency markets. The bloc has been successful in pulling out many trade deals where national currencies take first precedence.
Also Read: BRICS: India Dumps Billions of US Dollars
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar trade. The move could make the US dollar lose out on the supply and demand mechanism in the forex markets. The nine-member group could disrupt the hegemony of the West and tilt the financial powers to the East.
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BRICS: Russia & India Pay 90% of Trade in Local Currency and Sideline the US Dollar
According to reports, the two BRICS members India and Russia settled trade worth $64.5 billion in 2024 in local currencies and not the US dollar. The supply of Indian goods to Russia was up by 23.3% last year. India is among the fourth biggest trade partners with Russia and both the countries are pushing the de-dollarization agenda.
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“Mutual payments in national currencies are stable. As of today, national currencies account for around 90% of direct payments between Russia and India,” said Denis Alipov, Russian Ambassador to India. He added that both countries are in talks to use their national payment system Mir and RuPay for trade deals.
“Russian exports reached $60 billion (up by 7.7%), while supplies of Indian goods rose to $4.5 billion (up by 23.3%). Russia is one of India’s four biggest trade partners, while in terms of the volume of products supplied it is the second-largest after China,” he said. The initiative is in line with the BRICS de-dollarization initiative where the US dollar is being ignored for trade and transactions.
Also Read: India Officially Rejects BRICS Currency, Calls It ‘Impossible’
