Overview

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As part of the BRICS bloc, Iran and Russia are now making strides to reduce their reliance on the US dollar due to the heavy sanctions imposed by Western countries. In a While Western sanctions aimed to economically isolate Russia, the Kremlin has intensified efforts to persuade other nations to abandon the dollar in favor of local Iran and Russia have finalised an agreement to trade in their local currencies instead of the U.S dollar, Iran's state media reported on Wednesday. BRICS made a deal to trade in their own currencies, cutting out the US dollar. Russia wants a multicurrency system to dodge sanctions and weaken dollar control. By 2025, around 20% of oil trade was conducted in non-dollar currencies, showing a tangible shift by BRICS countries towards reducing dollar reliance. At the recent

BRICS Nations Russia and Iran Ditch the Dollar: A New Era of Trade?

The global economic landscape is shifting, with significant moves away from reliance on the US dollar, particularly within the BRICS nations. As part of the BRICS bloc, Iran and Russia are now making strides to reduce their reliance on the US dollar due to the heavy sanctions imposed by Western countries. This initiative is gaining momentum, signaling a potential challenge to the dollar's dominance in international trade.

Iran and Russia have finalised an agreement to trade in their local currencies instead of the U.S dollar, Iran's state media reported on Wednesday. This bilateral agreement underscores a growing trend amongst nations seeking greater financial autonomy and resilience against external pressures. While Western sanctions aimed to economically isolate Russia, the Kremlin has intensified efforts to persuade other nations to abandon the dollar in favor of local currencies.

BRICS Pushes for De-Dollarization

The BRICS alliance is at the forefront of this movement. BRICS made a deal to trade in their own currencies, cutting out the US dollar. Russia wants a multicurrency system to dodge sanctions and weaken dollar control. This is not just about avoiding sanctions; it reflects a desire for a more balanced and equitable global financial system.

Tangible Results: A Shift Away From the Dollar

The impact of these efforts is already being felt. By 2025, around 20% of oil trade was conducted in non-dollar currencies, showing a tangible shift by BRICS countries towards reducing dollar reliance. This is a significant increase compared to previous years and demonstrates a real commitment to de-dollarization. At the recent BRICS summit, further discussions were held on expanding the use of local currencies in trade and investment.

The move by Russia and Iran, bolstered by the broader BRICS agenda, represents a significant development in international trade and finance. It remains to be seen how far this trend will go, but the momentum is clearly building for a more diversified and less dollar-centric global economy.

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