BRICS trade currency developments are moving forward as Russian President Vladimir Putin announced that member nations now conduct around 90% of their settlements using national currencies from BRICS countries, and this is actually cutting transaction costs by quite a bit. The BRICS trade currency initiative has catalyzed various major transformations in how global finance operates, with Putin’s economic plan spearheading dollar alternative mechanisms across several key payment infrastructures including both digital systems and also traditional settlement channels. BRICS has tested a digital gold currency prototype as well, and this marks another step toward reducing dollar dependency in international trade right now.
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BRICS Members Adopt National Currencies to Cut Costs and Avoid Dollar Risks
National Currency Usage Reaches 90% in Russian Trade
The shift toward using national currencies within BRICS has been picking up momentum, and Putin emphasized this progress during recent statements and also at various key forums. Through several major strategic initiatives at the 17th BRICS Summit, the Russian leader highlighted how BRICS nations are increasingly conducting trade settlements in their own currencies rather than the dollar.
Putin stated:
“By the way, the use of national currencies in trade between our countries is steadily growing: in 2024, the share of our national currency, the ruble, and the currencies of friendly countries in Russia’s settlements with other BRICS countries amounted to 90 per cent.”
Western sanctions following Russia’s invasion of Ukraine back in February 2022 accelerated this transition, and the impact has been quite significant actually. Across multiple essential sectors, the sanctions pushed Moscow to deepen economic partnerships with alternative partners, with BRICS members like China, India, Brazil, and South Africa working together more closely on this. BRICS designed the trade currency systems to reduce expenses and also increase efficiency for cross-border transactions right now.
Independent Settlement System Proposed
Putin’s economic plan includes establishing new financial infrastructure that would allow BRICS countries to bypass Western-controlled payment systems. At the time of writing, member nations are actively developing and testing these plans.
Putin proposed:
“The creation of an independent settlement system on the BRICS platform will make transactions faster, more efficient and safer.”
The digital gold currency concept that BRICS has been exploring emerged through IRIAS, which actually issued 100 Units on October 31. Each unit was pegged to 1 gram of gold and backed by 40% physical gold reserves along with 60% BRICS national currencies. The currencies are equally weighted between member currencies including the Brazilian real, Chinese yuan, Indian rupee, Russian ruble, and South African rand.
Russia has been testing the digital ruble domestically and has also collaborated with Iran on developing alternatives to SWIFT. The BRICS trade currency approach is focusing on using national currencies from member states rather than creating a single common currency, with Putin noting that such a step would require caution and careful consideration.
Expanding Dollar Alternative Infrastructure
The push for a dollar alternative within BRICS has been gaining traction as member nations work to reduce their reliance on the US currency. Putin emphasized the need to continue expanding these efforts across the bloc.
Putin stated:
“It is necessary to further expand the use of national currencies in mutual settlements.”
The dollar alternative system that BRICS is building addresses concerns about dollar weaponization through sanctions. Trade among BRICS national currencies has actually grown quite a bit as new members Egypt, Ethiopia, Iran, and the United Arab Emirates joined the bloc in January 2024. The financial mechanisms within BRICS, including the New Development Bank, are supporting this transition toward greater use of the BRICS trade currency in regional commerce.
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Putin also mentioned:
“The task of increasing the volume of reciprocal capital investments by the member countries of the association, including through the BRICS mechanisms and primarily the New Development Bank, also seems relevant. For these purposes, Russia has proposed forming a new BRICS investment platform.”
Right now, the bloc’s expanded membership brings additional economic weight to efforts for establishing alternative financial infrastructure. The BRICS trade currency mechanisms are being viewed as essential tools for member nations to conduct trade without facing the risks associated with dollar-dominated systems. Putin’s economic plan continues to prioritize these developments as part of Russia’s broader strategy for economic restructuring and also creating what he described as a transparent and competitive business environment.
