Two countries in the Commonwealth of Independent States (CIS) have settled over $50 billion worth of trade in 2025 in local currency, ditching the US dollar for cross-border transactions. The move signifies a shift in trends where emerging economies are staying away from Western-led currencies. A new norm is being created where local currencies are being used for trade settlements. The downturn is being reflected in the DXY index where the greenback is struggling to climb above the 98 level.
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Russia & Belarus Settle $50 Billion Worth of Trade in Local Currency, Sideline US Dollar
Russia and Belarus have fully switched to settling payments in local currency keeping the US dollar at bay. Deputy Prime Minister of Russia Alexei Overchuk, confirmed that the two countries settled $50 billion worth of payments in local currency and not the US dollar. The numbers could increase over the years, as in 2020, their trade turnover was $35 billion. Five years down the line in 2025, the numbers jumped to $51 billion.
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Also, trade between the two countries is expected to grow bigger as they are sanctioned by the White House and are unable to use the US dollar and solely depend on local currency. “Our countries are showing strong growth in mutual trade. Over the past five years, we have increased our trade turnover from $35 billion to nearly $51 billion. According to our data, in the first quarter of 2025, we also recorded a 3% increase compared to the previous year. For Belarus, Russia is the main trading partner, and this relationship is a special one,” said Overchuk.
The Russian ruble was the main local currency for settling the trade payments with Belarus, not the US dollar. In addition, this puts the US dollar in the spotlight as developing countries are ending reliance on the greenback. Apart from the CIS bloc, many other alliances are following in the footsteps of de-dollarization. Moreover, it extends from Asia, Africa, South America, and Eastern Europe.