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BRICS member Russia sold crude oil in local currencies across the world and used the US dollars for less than 10% of all transactions, reported Business Insider. ian Foreign Minister Sergey Lavrov said BRICS countries are developing a payments platform that will allow them to bypass the US dollar, per TASS, a state news agency. 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 member Russia is now using the Chinese Yuan as payment to export crude oil to other countries. Russia has used the Chinese Yuan for 25% of all the payments for 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 By moving away from the dollar and embracing alternative payment systems, BRICS nations are actively reducing their vulnerability to economic coercion, allowing them to BRICS leaders, including Russian President Vladimir Putin and Chinese leader Xi Jinping, have publicly voiced their commitment to jointly introduce an alternative

BRICS Payments in US Dollar Decline 25% for Russian Oil: A Shift Away from the Greenback?

A significant shift is underway in global trade, particularly concerning Russian oil transactions. Reports indicate a sharp decline in the use of the US dollar for payments within the BRICS economic bloc, and especially for Russian oil exports. Specifically, BRICS payments in US dollar decline by 25% for Russian oil, signaling a move towards alternative currencies and payment systems.

The US Dollar's Diminished Role in Russian Oil Trade

BRICS member Russia has actively sought to reduce its reliance on the US dollar. According to Business Insider, Russia sold crude oil in local currencies across the world, using the US dollars for less than 10% of all transactions. This dramatic decrease showcases Russia's commitment to de-dollarization in its trade relationships.

BRICS Developing Alternative Payments Platform

The push away from the dollar isn't solely a Russian initiative. Russian Foreign Minister Sergey Lavrov confirmed that BRICS has paid more than 65% of trade settlements among member countries in local currencies and not the dollar. Furthermore, Lavrov stated that BRICS countries are developing a payments platform that will allow them to bypass the US dollar, per TASS, a state news agency. This platform would facilitate trade in local currencies, further reducing dependence on the greenback.

The Rise of the Chinese Yuan

BRICS member Russia is now using the Chinese Yuan as payment to export crude oil to other countries. Russia has used the Chinese Yuan for 25% of all the payments for its oil exports. This increasing adoption of the Yuan highlights its growing importance in international trade and the potential for further de-dollarization.

Why the Shift Away from the US Dollar?

Several factors are driving this trend. One key concern is the risk of economic coercion from the United States. Upsetting the U.S. government could mean retaliatory measures in the form of a freeze on a country’s dollar holdings. By moving away from the dollar and embracing alternative payment systems, BRICS nations are actively reducing their vulnerability to economic coercion, allowing them to maintain greater economic independence. This concern has been amplified by past instances of sanctions and financial restrictions imposed by the US.

BRICS Leaders Advocate for an Alternative

BRICS leaders, including Russian President Vladimir Putin and Chinese leader Xi Jinping, have publicly voiced their commitment to jointly introduce an alternative to the US dollar-dominated global financial system. This unified stance underscores the BRICS nations' collective desire for a more multipolar and equitable financial landscape.

Trump's Warnings and the Future of BRICS Payments

U.S. President-elect Donald Trump has warned the world about the potential consequences of challenging the US dollar's dominance. However, the BRICS nations appear undeterred, forging ahead with their plans to reduce reliance on the greenback and establish alternative payment systems. The 25% decline in US dollar payments for Russian oil is just one indicator of this significant shift, which could reshape global trade dynamics in the years to come.

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