BRICS member Russia is bypassing the US dollar and strengthening its native economy by accepting the local currency, the Russian Ruble for trade settlements. The share of Russia’s trade transactions in local currency with other BRICS members reached 85% in January 2024. Russia is clearly bypassing US sanctions and accepting local currency with BRICS members and sidelining the dollar.
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This puts Russia in an advantageous position as the Ruble is being used for cross-border transactions by BRICS members. The move helps the Russian economy stay afloat despite the sanctions imposed by the US. Read here to know how many sectors in the US will be affected if BRICS stops using the dollar for trade.
BRICS: 85% of Trade in Russia Settled in Local Currency, Not US Dollar
Russia’s Central Bank Governor Elvira Nabiullina confirmed that BRICS members are increasingly settling trade with the Ruble and not the US dollar. Nabiullina stressed that trade settlement from BRICS countries in local currency has doubled over the past two years. Cross-border transactions in the local currency Ruble were at 40% in 2021 and now stand at 85% in 2024. That’s an uptick of nearly 113% in the two years.
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“The share of Russia’s settlements in national currencies with fellow BRICS countries has increased to 85%, up from just 26% two years ago,” said Nabiullina on Tuesday to RIA Novosti. Moreover, the US pressing sanctions on developing countries is what led them to create an alternative and ditch the dollar.
Additionally, Russia and Iran have officially ended ties with the SWIFT payment system and no longer use it for transactions. BRICS member Russia confirmed that it is building a new payment system and the US dollar will not be integrated. Also, the move gives Russia autonomy in global trade and not be affected by the US sanctions.
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