Brics states ditch USD in 95pc of trade

MOSCOW. – In a sign of growing de-dollarization efforts, Brazil, Russia, India, China, South Africa (Brics) have ditched the US dollar in 95 percent of their trade.

The secretary general of the International Chamber of Commerce (ICC) Tatiana Mohaghan, revealed the massive shift in currency usage in Russia’s dealings with the two countries.

The shift was defined by a massive increase in local currency usage in the trade between Russia and the two Brics nations. Moreover, the ICC reported that Russia’s export settlements in either the US dollar or the Euro also fell drastically. Specifically, it has fallen from more than 85 percent in 2021 to just 34 percent last year.

Over the last year, the Brics economic alliance has not been shy about its de-dollarization plans. Indeed, amid increased Western sanctions on Russia, the country shifted its trade focus. As a result, the bloc has increased its overall usage of local currencies in bilateral trade.

That transition has led to some massive changes in the overall usage rate of different currencies by the three biggest nations. Specifically, for Brics countries they have ditched the US dollar in 95 percent of trade. Russia has seen its overall trade settlements with these two countries occur in local currencies.

The ICC has stated that Russian ruble usage in cross-border transactions has increased by 39 percent from 2021 to 2023. Moreover, friendly country currencies also increased over the same time frame. Altogether, the shift in focus on trade settlement was put into action for the first time last year and is expected to grow significantly throughout 2024.

“About 95 percent of settlements in the Chinese and Indian directions in 2023 were carried out in national currencies,” Monaghan stated.

“China has become Russia’s key trade partner accounting for 29 percent of trade turnover.”

Russian President Vladimir Putin previously said that Russia and China settled nearly 70 percent of trade in local currencies.

Meanwhile, Egypt has officially ditched the US dollar in trade. The country was one of five nations to accept an invitation to join the alliance at its 2023 summit and has already firmly embraced its shift to local currency trade.

Alongside Egypt, Iran, Saudi Arabia, the United Arab Emirates (UAE), and Ethiopia are expected to join the bloc. Now, Egypt has already expressed its desire to move away from the greenback in trade.

Egypt’s Ministry of Foreign Affairs assured that the country will urge its trading partners to use their national currencies to lessen the burden of the rising cost of utilizing foreign currencies for settlements.

Leading financial analysts are warning that the US supremacy has reached a tipping point and its dominance cannot move further up. –Watcher.Guru