Two more countries turn to BRICS currency instead of the US Dollar as the BRICS continue to convince developing countries to de-dolarize.
BRICS is making progress in its effort to de-dollarize by persuading developing nations to replace the U.S. dollar in all international transactions. Four more nations have become coalition members, significantly boosting the alliance’s de-dollarization efforts. Additionally, the new members favor the formation of a BRICS currency to devalue the U.S. dollar.
Amid the de-dollarization process, two nations have stated publicly that, following the introduction of the tender, they will begin settling trade in BRICS currency rather than the U.S. dollar. Learn in this article which U.S. sectors will be affected if BRICS abandons the dollar for international trade.
Russia and Iran Will Settle Trade in the BRICS Currency Following Its Introduction; They Will Abandon the U.S. Dollar
Russia and Iran, both BRICS members, unequivocally declared their intention to transition to the BRICS currency on the day it was introduced, thereby eliminating their reliance on the U.S. dollar for trade purposes. Due to the imposition of sanctions by the United States, both Russia and Iran seek to reduce their economic ties with the dollar.
“Russia and Iran are collaborating on establishing a new single currency within the association’s framework,” stated Kazem Jalali, the Iranian ambassador to Russia. It has been reported that over 50% of all transactions between Russia and Iran are presently resolved in rubles and riyals. “Rupees and rials comprise over sixty percent of bilateral trade,” Jalali stated. The development suggests that Russia and Iran will adopt the BRICS currency as soon as it becomes commercially available.
Even so, the date the BRICS currency is expected to be introduced is still being determined. The alliance is deliberating on establishing the currency, which is still an ongoing development process. The fate of the BRICS currency may be determined at the sixteenth summit in October, at which all members will contribute their perspectives.
