BRICS members India and Indonesia have officially agreed to abandon the US dollar and settle cross-border transactions in local currencies. The decision to use local currencies for trade comes even after Trump threatened to levy 100% tariffs on goods entering the US. Indonesia intended to promote its national currency for bilateral trade and India has accepted the new economic policy. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
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Cross-border transactions between BRICS members India and Indonesia will soon be settled in local currencies and not the US dollar. The developing countries aim to deepen their financial integration and promote trade in national currencies to strengthen their GPDs. Trump is yet to react to the new policy where the US dollar is being sidelined and local currencies are taking center stage.
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BRICS: India and Indonesia To Soon Settle Trade in Local Currencies, Not the US Dollar
India’s Prime Minister Narendra Modi welcomed Indonesian President Prabowo Subianto to New Delhi over the weekend to discuss the new trade policy. Both the nations released a joint statement agreeing to use national currencies between the two and not the US dollar. BRICS is advancing the de-dollarization agenda and taking on the US dollar even after Trump reclaimed the White House.
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“(Both leaders) emphasized the importance of its expeditious implementation. They expressed confidence that using local currency for bilateral transactions would further promote trade between Indonesia and India and deepen financial integration between the two economies,” read the joint statement published by the Foreign Ministry.
The report indicates that the Indian rupee or the Indonesian rupiah will be used to settle trade between the two nations. Indonesia joined BRICS in January 2025 and quickly jumped on the anti-US dollar bandwagon. If Trump fails to tackle BRICS de-dollarization agenda, the US dollar will be the first casualty in the global markets.