BRICS Bank Encourages Developing Countries to Ditch US Dollar

Joshua Ramos
Source: Reuters

With the annual summit just a few weeks away, the BRICS Bank has encouraged developing countries to ditch the US dollar. Specifically, the BRICS New Development Bank chair, Dilma Roussef, stated that developing countries should prioritize the use of their local currencies.

Roussef recently met with Russian President Vladimir Putin for a discussion regarding the bank and national currencies. There, she stated that there were “no obstacles for developing countries to switch to trade in national currencies,” regarding the bloc’s continued de-dollarization efforts.

BRICS Nations
Source: Institute for New Economic Thinking

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BRICS New Development Bank Encourages National Currency Use

The BRICS bloc has been an undeniable story for the geopolitical sector this year. Moreover, they have clearly prioritized two things; growth and de-dollarization. Suseuqnlety, those ideas have seemingly gone hand in hand, as the bloc has encouraged one to influence the other.

Specifically, the BRICS Bank has encouraged developing countries to ditch the US dollar. Indeed, the bank’s chair has stated that these nations should turn away from using the greenback. Instead, they prioritized the use of local currencies to strengthen trade and their own economies.

Source: CNN

“There are no obstacles for the countries of the developing world to carry out their foreign trade operations in national currencies,” Rousseff told Putin in a recent meeting. Subsequently, the two met prior to the two-day annual summit taking place in Johannesburg on August 22nd.

Also Read: Is BRICS Poised to Become a Global Superpower?

Additionally, the emphasis on national currencies has undoubtedly been a focus for the bloc. Moreover, as these developing nations seek entry into the economic alliance, their adherence to this preference should continue international de-dollarization.

Regarding the increase in national currency use, Putin told Roussef that “settlements are increasing.” Thereafter, he noted that the bank has a role to play in these continued efforts. The upcoming summit should continue this campaign for national currency use. Additionally, it should bring forth expansion criteria for the bloc.