BRICS is advancing to eliminate the US dollar in all of its global trade and transactions in 2024. The bloc aims to put local currencies ahead of the US dollar to strengthen their native economies and businesses. The alliance is also convincing other developing countries to follow suit and settle payments in local currencies for cross-border transactions.
Read here to know how many sectors in the US will be impacted if BRICS ditches the dollar for trade. The de-dollarization initiative is spreading its wings across the world making developing countries end dependency on the dollar.
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BRICS: China & Russia Initiate $260 Billion Worth of Trade Without the US Dollar
BRICS members China and Russia recently signed a trade agreement where they will use local currencies up to $260 billion. The trade deal will be initiated to settle payments in exchange for commodities purchased between the two nations. Both China and Russia will settle payments in the Chinese Yuan and the Russian Ruble, and not the US dollar.
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95% of the $260 billion worth of trade will be settled in the Chinese Yuan. The rest 5% will be settled in the Russian Ruble and the Euro. The development indicates that the BRICS alliance is serious and will do almost anything to push the de-dollarization agenda ahead.
“$260 billion worth of trade between China and Russia this year. But almost no US dollar will be used! It will be 95% Chinese yuan and Russian rubles. Maybe some euros are involved. This de-dollarization will soon be replicated among all BRICS+ members,” said an analyst.
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If many other developing countries begin to follow the BRICS agenda, then the US dollar will be put under pressure. Therefore, the next decade will be completely different from today as local currencies could gain strength in the financial sector.