Overview

Click to expand overview
Russia and China have nearly eliminated the U.S. dollar from their bilateral trade, conducting transactions in rubles and yuan as de-dollarization reshapes global economic power structures. Now, amid the BRICS alliance flourishment, Russia and China have announced they have almost completely ditched the US Dollar in bilateral trade. Indeed In a striking move that could send shockwaves through the global economy, Russia and China have decisively abandoned the US dollar in all bilateral trade, marking a 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 Russia and China have completely abandoned the use of Western currencies, including US Dollar, in their bilateral trade, said Russian Prime Minister Mikhail

BRICS Russia and China Completely Ditch US Dollar for Trade: De-Dollarization Accelerates

The global economic landscape is undergoing a significant shift as BRICS nations, particularly Russia and China, actively move away from reliance on the US dollar. This move, fueled by geopolitical considerations and a desire for greater economic independence, is reshaping international trade and finance.

In a striking move that could send shockwaves through the global economy, Russia and China have decisively abandoned the US dollar in all bilateral trade, marking a pivotal moment in the ongoing de-dollarization trend. Russia and China have nearly eliminated the U.S. dollar from their bilateral trade, conducting transactions in rubles and yuan as de-dollarization reshapes global economic power structures. Now, amid the BRICS alliance flourishment, Russia and China have announced they have almost completely ditched the US Dollar in bilateral trade. Indeed, this signals a strengthening of economic ties between the two nations and a clear message to the world about their intentions.

The Shift Away from the Dollar: Key Drivers

Several factors contribute to this de-dollarization drive:

  • Geopolitical tensions: Sanctions and political pressure from the West have prompted Russia and China to seek alternative payment systems.
  • Desire for economic independence: Reducing reliance on the dollar allows these nations greater control over their economies and reduces vulnerability to US monetary policy.
  • Rise of the Yuan: China's yuan is increasingly becoming a viable alternative currency for international trade.
  • BRICS Alliance: The BRICS nations are actively promoting the use of local currencies in trade among themselves. 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 US Dollar.

Implications of De-Dollarization

The implications of this trend are far-reaching:

  • Weakening of the Dollar's Dominance: As more countries reduce their dollar holdings, the dollar's status as the world's reserve currency could be challenged.
  • Rise of Alternative Currencies: The euro, yuan, and other currencies could gain prominence in international trade and finance.
  • Increased Regional Trade: De-dollarization could foster greater regional economic integration, particularly among BRICS nations and their trading partners.
  • Reduced US Influence: A decline in the dollar's global influence could diminish the US's ability to exert economic pressure on other countries.

Russia and China's Bilateral Trade in Local Currencies

Russia and China have completely abandoned the use of Western currencies, including US Dollar, in their bilateral trade, said Russian Prime Minister Mikhail. This signifies a complete shift to using rubles and yuan in their transactions, covering a wide range of goods and services.

This move is not just about trade; it's about building a new financial infrastructure that bypasses the US-dominated system. It signifies a long-term commitment to de-dollarization and a strategic alliance aimed at reshaping the global economic order.

Conclusion: A New Era of Global Finance?

The decision by Russia and China to completely ditch the US dollar in bilateral trade is a significant step towards a multipolar world. While the dollar is unlikely to lose its dominant position overnight, this trend signals a gradual erosion of its influence and the emergence of a more diversified and decentralized global financial system. The continued growth and influence of BRICS nations will undoubtedly play a crucial role in shaping this new era.

Top Sources

Related Articles