The BRICS alliance is advancing the de-dollarization agenda by using local currencies and rejecting the US dollar for trade. Russian President Vladimir Putin announced that 85% of trade within the Commonwealth of Independent States (CIS) is successfully settled in local currencies. The development gives higher financial independence for developing countries to reduce dependency on other Western foreign currencies.
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The CIS consists of 12 countries – Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. The only BRICS member in the CIS bloc is Russia and the country is pushing de-dollarization to its neighboring nations. The BRICS member is making more developing countries pay local currencies for trade and is sidelining the US dollar.
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BRICS: 12 Countries Pay 85% Trade in Local Currencies, Ditch US Dollar
Speaking at the CIS summit in Moscow on Tuesday, Putin revealed that the CIS countries are putting local currencies forward. The trade settlements in local currencies among members have surpassed 85%, he said. “The use of national currencies is widening in mutual payments. Their share in commercial operations among CIS participants has already been above 85%,” he said. After BRICS, CIS is now making national currencies thrive as it looks to end dependency on the US dollar.
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Putin confirmed that the de-dollarization trend will continue and BRICS and CIS will advance the agenda. “The process of import phase-out is moving quickly, and thus the technology sovereignty of our country is being strengthened,” he said.
De-dollarization is a cause of concern to the US economy as the dollar could face massive deficits. This could lead to hyperinflation in the home land causing job losses and making daily essentials skyrocket. The US needs to import the dollar to other countries to keep its economy safe from tanking. BRICS is cutting ties with the US dollar through de-dollarization and also encouraging other countries to follow suit.
