In an important step for the BRICS alliance, Russia and China have ditched the US dollar for trade transactions.
Russian Foreign Minister Sergey Lavrov recently announced that bilateral economic relations between the two countries have almost completely abandoned the dollar.
The decision to https://twitter.com/BRICSinfo/status/1782409900095668341?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1782409900095668341%7Ctwgr%5E856b4aaaf54fb2142308a51e38f5eec4e5e36c9e%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwatcher.guru%2Fnews%2Fbrics-russia-and-china-completely-ditch-us-dollar-for-trade of the greenback in these trade deals has long been a goal of the economic alliance. Currently, more than 90% of the countries’ bilateral trade deals are settled in yuan or ruble. Therefore, both sides are now ready to continue these efforts which have yielded monumental results.
Over the past few years, the BRICS economic alliance has been steadily pushing for de-dollarization in the Global South. He chose to promote national currencies in the hope of reducing Western dominance of the world economy. Just four months after the start of 2024, significant progress has been made towards this goal.
Against the backdrop of the burgeoning BRICS union, Russia and China have announced that they have all but eliminated the use of the US dollar in bilateral trade. The Minister of Foreign Affairs of Russia discussed this achievement with the TASS news agency. In addition, economic cooperation between the two countries is expected to strengthen.
Throughout 2023, trade between the two countries continues to grow. Specifically, transactions between them reached a record $240 billion, marking a 26% increase. In contrast, trade deals between the US and Russia hit a 30-year low.
This change is undoubtedly due to the Russian sanctions imposed after the Russian invasion of Ukraine. The weaponization of the US dollar was the main catalyst for these dedollarization efforts. It has also become a key pillar of the BRICS infrastructure.
This development will undoubtedly benefit both the ruble and the yuan. Moreover, it is likely to set a precedent for increasing the importance of the use of the national currency as a by-product of de-dollarization. It will be interesting to see how this may affect the further actions of other participating BRICS members.
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