BRICS Leaving the Dollar Behind: A New Era of Native Currency Trade
The BRICS alliance is making significant strides towards de-dollarization, with native currency trade increasingly outpacing transactions settled in USD. Explore how BRICS nations are reshaping the global financial system by reducing their reliance on the US dollar.
BRICS Alliance Accelerates De-Dollarization Efforts
Amid its ongoing de-dollarization effort, the BRICS bloc has announced it is leaving the US dollar behind, shifting its focus to the development and utilization of its own currencies. This move signifies a growing desire among member nations to assert financial independence and reduce vulnerability to fluctuations in the US dollar.
The Rise of Native Currency Trade Within BRICS
According to projections, by 25 de sept. de 2025, the BRICS alliance will see native currency trade substantially exceed USD-based transactions. Key initiatives driving this shift include:
- Digital Payments: Implementing advanced digital payment systems to facilitate seamless cross-border transactions in local currencies.
- Trade Agreements: Forging bilateral and multilateral trade agreements that prioritize the use of national currencies.
A Step Towards Multipolarity: Challenging the Dollar's Hegemony
Brazil's President has called for the BRICS nations to create a common currency for trade and investment between each other, a pivotal step towards reducing dependence on the dollar. The goal isn't necessarily a single, competing currency, but rather a network of strong, independent currencies capable of facilitating international trade.
Real-World Examples of De-Dollarization
The move to native currency trade isn't just theoretical. Russia and Iran have officially announced that 96% of their bilateral trade is now conducted using their local currencies – the Russian ruble and the Iranian rial. This illustrates the practical viability of de-dollarization and its potential to strengthen economic ties between nations.
The New Development Bank's Role in Abandoning the Dollar
The New Development Bank (NDB) of the BRICS economic alliance announced on Wednesday its plans to abandon the US dollar completely within the next 3 years. This bold decision reinforces the commitment of BRICS nations to build a financial system less reliant on the US dollar.
How US Dollar Will Be Dethroned by BRICS National Currencies
Discover the multi-faceted approach BRICS nations are taking to diminish the dollar's dominance, focusing on native currency usage and innovative financial solutions. This shift represents a fundamental change in the global economic landscape, potentially leading to a more balanced and multipolar world.