BRICS is advancing in its de-dollarization quest by convincing developing countries to ditch the US dollar for all global transactions. Now that four new countries have joined the bloc, the alliance has received a boost in the arm of its de-dollarization agenda. The new members are also keen on the formation of a BRICS currency to bring the US dollar down.
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Amid the de-dollarization process, two countries have openly expressed that they will begin using BRICS currency to settle trade and not the US dollar after the launch of the tender. Read here to know how many sectors in the US will be impacted if BRICS ditches the dollar for trade.
Russia & Iran To Settle Trade in BRICS Currency After Its Launch, Ditch US Dollar
BRICS members Russia and Iran made it clear that they would start using BRICS currency the same day of its launch and ditch the US dollar for trade. Both Russia and Iran are facing sanctions from the US and, therefore want to distance themselves from the dollar.
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“The creation of a new single currency within the framework of the association is what Russia and Iran are working on,” said Iranian Ambassador to Russia Kazem Jalali. He stated that more than half of all transactions between Russia and Iran are now settled in rubles and riyals. “More than 60% of bilateral trade is in rubles and rials,” Jalali said. The development indicates that Russia and Iran will switch to BRICS currency the moment it is launched in the markets.
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However, a tentative date for the launch of the BRICS currency remains unknown. The alliance is currently deciding on the formation of the currency and the development is a work in progress. The 16th summit in October could decide the fate of the BRICS currency as all members will provide their insights.