BRICS is looking to dominate the food and crops sector and reduce the US dollar’s hegemony for trade settlements. Russia recently proposed a plan to allow countries to settle trade in local currencies for grain exports. The plan termed ‘grain exchange’ allows import and export companies to buy grain directly from farm producers and firms. The exchange could be initiated in local currencies sidelining the US dollar. However, BRICS has now gone a step further and plans to use the same mechanism for fish exports, where local currencies will be the primary mode of payment and not the US dollar.
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BRICS member China is the second biggest exporter of fish in the world exporting $10.40 billion worth of seafood. Its counterpart, India also exports nearly 17% of its fish and seafood products around the globe. The total worth of India’s fish exports stands close to $4.6 billion a year. Russia is looking to monetize its BRICS counterpart’s global fish exports to diminish the US dollar’s dominance.
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BRICS: Russia Aims To Propose Local Currencies For Fish Exports, Sideline the US Dollar
Russia’s Agriculture Minister Oksana Lut said that the country is planning to add fish along with grains exports for local currency settlements. “The BRICS countries now make up about 30% of all arable land in the world. We jointly produce about 40% of grain crops, 50% of fish, and 50% of dairy products worldwide. Therefore, in fact, the BRICS countries are a key platform for ensuring global food security,” Lut said.
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However, the proposal is yet to be ideated and is currently in its initial days. Also, none of the BRICS countries have agreed to the proposal created by Russia. Their acceptance will be known only after the proposal is made official with a set of rules and regulations in place. BRICS will then have to decide if they accept using fish and grain exports in local currencies or the US dollar.