Amid the BRICS bloc growth initiatives, both China and Russia have announced that 90% of all trade between them is conducted in Ruble or Yuan after ditching the US Dollar. Both Russian President Vladimir Putin and China’s Xi Jinping met to discuss the relationship between both BRICS nations and how to further the alliance’s mission.
Russia and China revealed a massive joint statement that deepened diplomatic relations between the two nations. Specifically, both leaders had agreed to increase the “comprehensive partnership and strategic operation.”
The latest move involving the Chinese yuan and Russian ruble is a massive step toward de-dollarization and local currency promotion. Both Russia and China have been at the forefront of the alliance in terms of de-dollarization efforts, Furthermore, their boosted relationship sets a precedent for other BRICS nations to collaborate on ditching the US dollar.
Russia’s Putin also revealed in the meeting that the shift towards national currencies has had a positive effect on trade. He added that the move is in the best interest of their economies. One of Russia’s biggest reasons for pushing de-dollarization is to surpass the multiple sanctions imposed upon the country by the West. Overall, BRICS is using de-dollarization to sway interested countries to have less trust in the US Dollar, thus deciding to abandon it.
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The BRICS alliance is also working on a common BRICS currency to be used among the bloc. This would be used in addition to the local currencies already being used. Ditching the US Dollar would bring forth a new world order where the greenback isn’t dominant in the global market/reserve. With this latest announcement, Russia and China have revealed that this mission is etching further towards completion.