BRICS member Russia confirmed that it has settled 80% of trade with its neighboring country Kazakhstan in local currencies and not the US dollar. Russian President Vladimir Putin confirmed the development saying that both nations have agreed to strengthen their trade ties.

Also Read: BRICS Moving Away From the De-Dollarization Agenda

“The problem is and partly remains but we have already transferred more than 80% of all settlements to national currencies. From my point of view, everything should be done to strengthen our ties,” said Putin. Russia is advancing the BRICS de-dollarization initiative to its neighboring countries by putting the US dollar behind local currencies.

Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. Local currencies will strengthen in the forex markets and give developing countries a boost in the arm. This puts the US dollar’s hegemony at risk as emerging economies are looking to topple it as the world’s reserve currency.

Also Read: Secret Metal That Helped Win World World 2 Is Now Controlled by BRICS

BRICS: Russia & Kazakhstan Settle 80% of Trade in Local Currencies, Sideline the US Dollar

Russia and Kazakhstan are part of the Commonwealth of Independent States (CIS) bloc which consists of 12 countries. The CIS alliance countries include Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. Therefore, Russia is pushing the de-dollarization agenda to both BRICS and the CIS alliance simultaneously making local currencies stronger and the US dollar weaker.

Also Read: BRICS Determined to Trade In Local Currencies, Not US Dollar

Just recently, the CIS alliance had come to an agreement to settle trade in local currencies. Around 85% of all cross-border transactions are settled in local currencies and not the US dollar among CIS nations. “The use of national currencies is widening in mutual payments. Their share in commercial operations among CIS participants has already been above 85%,” said Putin. In conclusion, the US dollar is facing the heat from the local currencies of BRICS and CIS nations.