The BRICS alliance’s commitment to reducing reliance on the US dollar has reached a significant milestone. Native currency trade amongst BRICS nations now surpasses transactions settled in the US dollar.
In recent years, the BRICS bloc has actively sought to reduce the global dependency on the US dollar. This strategic aim is reflected in the substantial drop in global reserves held in the dollar since 2002. The alliance’s focus on native currency trade has resulted in a profound shift, challenging the traditional hegemony of the greenback in international settlements.
Shastri notes, “Countries are now happier trading in their own currencies,” citing reduced transactional costs as a significant advantage. By bypassing the dollar, BRICS nations can efficiently conduct trade without the need for exchange rate adjustments.
This system aims to provide a seamless method similar to the West’s SWIFT, further reducing reliance on the US dollar and promoting economic cooperation among BRICS nations.
Integrating digital currencies could further enhance the de-dollarization efforts. The move would facilitate more streamlined trade operations and foster innovation in financial technologies.
It is also a significant step towards creating a more balanced international monetary system, where multiple currencies play a role in trade settlements.
Future prospects include expanding the use of digital currencies, improving payment infrastructures, and strengthening intra-bloc economic ties.
The transition to native currency trade among BRICS nations represents a strategic shift with wide-reaching implications. This de-dollarization effort challenges the status quo, encouraging a more diversified and balanced global economy.
The BRICS alliance is pioneering a transformative shift in global trade by embracing native currency trade. This move not only challenges the US dollar’s dominance but also fosters a more balanced international monetary ecosystem.
