Russia is aggressively pushing for de-dollarization within the BRICS economic bloc. Russia calls on BRICS to abandon the US dollar for trade settlements, marking a significant shift in global economic power dynamics. At the Russia-China Financial Dialogue forum held in Beijing, Russian Finance Minister Anton Siluanov made a pivotal statement. His message was clear: the Russia is making both BRICS and the CIS bloc ditch the US dollar for trade and transactions.

BRICS' Move Away From the US Dollar

This initiative isn't isolated. Putin revealed at the summit that BRICS and CIS will work towards ending. Russian President Vladimir Putin confirmed that 80% of trade between the two nations now bypasses the US dollar and settles in their local currencies. This move aligns with the broader BRICS strategy to reduce dependence on the US currency.

The BRICS Cross-Border Payment Initiative

A key component of this strategy is the development of alternative payment systems. The BRICS Cross-Border Payment Initiative (BCBPI) will use national currencies, instead of the US dollar. Russia's finance ministry and central bank released a detailed plan outlining the steps for implementing this initiative, aiming to create a more independent and resilient financial architecture within the BRICS nations.

Impact of De-dollarization

The implications of BRICS moving away from the US dollar are far-reaching. It could lead to a more multipolar global economy, reducing the US dollar's dominance in international trade and finance. This shift could also provide greater financial autonomy for BRICS nations and other countries seeking to diversify their currency reserves.