BRICS countries are promoting their native currency before launching a new tender in August 2023. The next BRICS summit will be held in South Africa and the BRICS nations Brazil, Russia, India, China, and South Africa will launch a new currency to settle international trade. The nations aim to remove the U.S. dollar from its global reserve status and overthrow the existing financial order.
China is making use of the timeline by asking other developing nations to settle trade using the Chinese Yuan. In Q1 2023, the Chinese Yuan was the most traded currency in Russia overtaking the U.S. dollar. In addition, France settled an LNG gas trade with China by paying in the Chinese Yuan, ending the reliance on the dollar.
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On the other hand, India has asked developing countries to settle trade in the Rupee instead of the U.S. dollar. India reached out to countries that don’t have the U.S. dollar in reserve to pay for international trade, reported Bloomberg. The Reserve Bank of India allows 18 countries to pay with the Rupee instead of the dollar. Kenya, Sri Lanka, and Singapore are among the list of nations that India wants to trade with using its native currency Rupee.
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BRICS Alliance Promotes Native Currency
South Africa’s BRICS ambassador, Anil Sooklal said that the block of nations must prioritize native currencies over the U.S. dollar. The development is the stepping stone to replace the dollar before they launch a new currency in August this year. In conclusion, the BRICS alliance of nations has already begun using their native currency for trade than the dollar.
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“National currencies should be increasingly used by the BRICS states not only in trade but also in investments and other transactions. Only this way can the foundation for the single BRICS currency be created,” he said to Tass News.