BRICS India Urges Ethiopia to Ditch US Dollar for Local Currency Trade
India has urged Ethiopia to explore settling bilateral trade in local currencies, aiming to reduce reliance on the US dollar. This move aligns with the broader BRICS alliance's push to de-dollarize and boost native economies. The initiative gains momentum as India urged Ethiopia to look at possibilities to settle bilateral trade in local currencies and cut ties with the US dollar. The potential shift promises to foster stronger economic ties between the two nations.
BRICS: A Growing Movement Away From the US Dollar
The call for Ethiopia to adopt local currency trade is part of a larger trend within the BRICS economic bloc. The move will help boost the native economies of BRICS. Other nations are also actively seeking alternatives to the US dollar in international transactions.
BRICS+ and the Dedollarization Trend: CIS Alliance Leads the Way
Beyond the core BRICS nations, the push for dedollarization is gaining traction. The BRICS: CIS Alliance Consisting of 12 Countries Ditch the US Dollar, Use Local Currencies For 85% Transactions. demonstrates the growing preference for alternative currencies. BRICS member Russia convinced the CIS bloc to embrace this change, showcasing the bloc's influence on regional trade dynamics.
The Expanded BRICS: Towards a New Economic Order?
With new members like Egypt, Ethiopia, Iran, the UAE, and Indonesia, The BRICS alliance – Brazil, Russia, India, China, and South Africa, alongside new members Egypt, Ethiopia, Iran, the UAE, and Indonesia – is moving toward a multipolar economic system. While complete consensus is still developing, the desire for alternatives to the US dollar is evident. While the Brazilian suggestion is not widely accepted among member states, India and the UAE, which share close ties with the U.S, are favorably disposed toward trading in local currencies, suggesting a nuanced approach within the alliance.
Impact on Ethiopia and the Global Economy
Ethiopia's adoption of local currency trade with India could have significant implications for its economy, reducing its vulnerability to fluctuations in the US dollar. It also signals a growing willingness among developing nations to challenge the dominance of the dollar in international trade, potentially reshaping the global economic landscape. Further developments within the BRICS+ alliance will be crucial in determining the future of global trade and currency dynamics.