BRICS Push Currency Swaps with 29 Countries: $550 Billion Deal Explained
The BRICS nations are gaining momentum in their efforts to de-dollarize international trade. A key initiative is the push for local currency swaps, particularly led by China, with 29 developing countries. This initiative aims to reduce reliance on the US dollar and foster greater economic cooperation amongst participating nations.
China's $550 Billion Currency Swap Initiative
China is seeking to support local currency swaps with 29 developing countries worth a total of 4 trillion yuan, roughly equivalent to $553.49 billion. These bilateral currency swaps aim to facilitate trade and investment using local currencies, bypassing the need for US dollar transactions. This move is seen as a significant step towards greater financial independence for these nations.
China is looking to sign currency swap agreements with 29 developing countries including BRICS nations. The currency swap agreement will be worth $553.49 billion. BRICS member China is looking to promote local currency swaps with 29 developing countries worth 4 trillion Yuan, which is equivalent to $553.49 billion.
De-dollarization Continues: BRICS Leading the Charge
The move towards local currency swaps aligns with the broader de-dollarization agenda promoted by BRICS. By using their own currencies for trade, countries can reduce their vulnerability to fluctuations in the US dollar and lessen their dependence on the US financial system. DE-DOLLARIZATION GOES ON, AND ON BRICS' member China is going to launch local currency swaps with 29 developing countries worth 4 trillion yuan ($553.49). This is a significant development in the ongoing shift away from dollar dominance in international finance.
BRICS Economic Power and Global Impact
The GDP of the BRICS countries varies significantly, with China having the largest GDP of $16.86 trillion in 2025, followed by India with $3.05 trillion, Brazil with $1.48 trillion, Russia with $1.47 trillion (estimated). This economic strength allows BRICS to play a more influential role in shaping the global financial landscape and promoting alternative trade mechanisms like currency swaps.
Learn more about the BRICS currency swap initiative and its implications for the global economy.