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BRICS countries are contemplating the use of local currencies for oil payments to reduce reliance on the U.S. dollar. This decision could negatively impact the The dollar retreats against local currencies in intra-BRICS trade. Sergey Lavrov, Russian Foreign Minister, declared that “national currencies now represent more than The U.S. dollar experienced a downturn against the majority of local currencies in the forex markets, including that of BRICS. The Russian ruble outperformed the Russia’s Foreign Minister, Sergey Lavrov confirmed that BRICS has paid more than 65% of trade settlements among member countries in local currencies and not the BRICS members view the US dollar as an obstacle to their economic growth. Reliance on the dollar exposes them to fluctuations in US monetary policy and Upsetting the U.S. government could mean retaliatory measures in the form of a freeze on a country’s dollar holdings. U.S. President-elect Donald Trump has warned the

BRICS U.S. Dollar Dips: Local Currencies Gain Ground

The U.S. dollar experienced a downturn against the majority of local currencies in the forex markets, including that of BRICS nations. Is this the beginning of a significant shift away from dollar dominance in international trade? Recent developments suggest that BRICS countries are actively seeking alternatives, with significant implications for the global financial landscape.

BRICS De-Dollarization: A Growing Trend

BRICS countries are contemplating the use of local currencies for oil payments to reduce reliance on the U.S. dollar. This decision could negatively impact the dollar's global standing. Russia’s Foreign Minister, Sergey Lavrov confirmed that BRICS has paid more than 65% of trade settlements among member countries in local currencies and not the U.S. dollar. The Russian ruble outperformed the dollar against BRICS currencies, showcasing the growing strength of local alternatives. Sergey Lavrov, Russian Foreign Minister, declared that “national currencies now represent more than” 65% of trade settlements within BRICS are now conducted in local currencies.

Why the Shift Away from the Dollar?

BRICS members view the US dollar as an obstacle to their economic growth. Reliance on the dollar exposes them to fluctuations in US monetary policy and can create economic instability. Upsetting the U.S. government could mean retaliatory measures in the form of a freeze on a country’s dollar holdings. This concern about potential sanctions and economic coercion is a major driving force behind the push for de-dollarization. Even U.S. President-elect Donald Trump has warned the BRICS nations (in the past) showing that this topic has been active for a very long time.

Dollar Retreats in Intra-BRICS Trade

The dollar retreats against local currencies in intra-BRICS trade, demonstrating the practical implementation of this strategy. As BRICS nations deepen their economic ties and prioritize trade in their own currencies, the dollar's influence within the bloc is expected to continue to diminish. This trend has far-reaching implications for the future of global trade and finance.

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