BRICS nations are making a deliberate shift towards conducting transactions in their national currencies, moving away from reliance on the U.S. dollar and the euro.
According to Russian Finance Minister Anton Siluanov, 65% of BRICS transactions are now carried out in local currencies. This shows a major strategic move away from Western financial systems.
The U.S. dollar and euro now make up less than 30% of payments within the BRICS bloc, marking a significant reduction in their usage.
Siluanov shared this update during a speech in Moscow, highlighting that the Russian ruble is being used for a large portion of the transactions. He was quoted by Tass as saying, “Indeed, we are in practice using national currencies and the Russian ruble within BRICS — 65% of all the settlements is made in rubles, in national currencies.”
This decline in the use of Western currencies reflects BRICS’ growing determination to reduce their dependency on the dollar and euro, which have dominated global trade and finance for decades.
One of the driving forces behind this shift is the geopolitical tension, particularly the sanctions imposed on Russia. These sanctions have encouraged BRICS members to seek alternatives to Western financial systems, accelerating the move towards national currencies.
The BRICS group, originally made up of Brazil, Russia, India, China, and South Africa, has expanded its influence with the recent inclusion of Iran, Egypt, Ethiopia, Saudi Arabia, and the United Arab Emirates (UAE).
This expansion increases BRICS’ collective economic and political power, allowing the group to push forward with its dedollarization agenda.
Siluanov confirmed that with the decline in the use of the dollar and the euro, “The share of the dollar and the euro is declining and it is less than 30% now.”
The broader BRICS strategy revolves around promoting the use of local currencies, which in turn strengthens economic ties among member states.
This shift also provides these nations with a buffer against the effects of Western sanctions, reducing the impact of decisions made by the U.S. and European financial systems.
As geopolitical tensions continue, particularly with Russia’s strained relationship with the West, BRICS nations are actively seeking to protect their economies by minimizing reliance on the dollar and euro.
This trend towards the use of national currencies is likely to grow, given BRICS’ emphasis on financial sovereignty and insulating their economies from external pressures.
With this strategic move, BRICS is positioning itself as a more independent economic bloc, less tied to the financial systems of Western nations.
As the group continues to grow and assert its economic influence, the decline of the dollar and euro within BRICS transactions could have lasting effects on global financial systems.