BREAKING: BRICS Alliance Eyes Move from US Dollar for Trade

August 24, 2023 5:40 pm Comments

The BRICS economic alliance, which includes Brazil, Russia, India, China, and South Africa, is making a significant shift by officially moving away from the use of the US dollar for trade settlements. Brazil’s President, Luiz Inacio Lula Da Silva, announced this decision during the recent BRICS Summit.

This move aligns with the bloc’s ongoing efforts to promote the use of local currencies in international trade, marking a notable step in the de-dollarization trend.

The BRICS Summit garnered global attention as discussions centered on various topics, including expansion and the use of local currencies.

Brazil’s president proposed the abandonment of the US dollar for trade settlements, emphasizing the need to increase payment options and reduce vulnerability. reports:

According to Brazil’s president, the BRICS economic alliance is officially set to abandon the US dollar for trade settlements.

Moreover, the development aligns with recent de-dollarization efforts embraced by the bloc. As they continue to promote the use of local currencies internationally.

Brazil’s President, Luiz Inacio Lula Da Silva, confirmed the development at this week’s BRICS Summit. Additionally, the bloc announced its agreement to expand.

Changing the geopolitical landscape, the alliance is set to welcome six additional countries by 2024.

This shift is expected to impact the value and performance of the US dollar in the coming months.

The expansion of the BRICS alliance, which already includes five member countries, was also discussed at the summit. The bloc plans to welcome six additional countries by 2024, thereby reshaping the geopolitical landscape.

With countries like Saudi Arabia, the United Arab Emirates, and Iran joining the alliance, the implications of moving away from the US dollar for trade settlements become more significant.

Particularly noteworthy is the potential shift away from the dollar for large oil sales, potentially leading to noticeable changes in global trade dynamics. concludes:

During the ongoing summit, local currencies were also set to be a focal point. The bloc has continuously sought to lessen reliance on the West and focus on unilateral economic growth.

Moreover, Russia maintains the most interest in this, considering Western sanctions placed on the country.

Moreover, Putin reinforced the global stance of the economic alliance.

Reuters reported yesterday that the president noted that the bloc stands for the “global majority.”

Although Putin is not present at the event in person, he is participating in the summit via video link from Russia.

Russian President Vladimir Putin echoed the sentiment for abandoning the US dollar during the summit, calling on the BRICS alliance to embrace local currencies for trade settlements.

This stance aligns with the alliance’s emphasis on reducing reliance on Western financial systems and promoting unilateral economic growth.

The BRICS alliance’s push to adopt local currencies and shift away from the US dollar underscores the group’s determination to assert its influence in the global economy.

This move not only marks a significant step toward de-dollarization but also reflects the bloc’s commitment to strengthening its collective economic stance.

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