The BRICS alliance is determined to trade in local currencies and not the US dollar for cross-border transactions. The US dollar is seen as an adversary that hinders their growth in the global financial sector. Local currencies are seen as an alternative option that can bring the hegemony of the USD down.

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

Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. BRICS members Russia and China are advancing the de-dollarization agenda convincing emerging economies to use local currencies for global transactions. The move is hampering the prospects of the US dollar as it is being used less for trade and commerce.

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

BRICS: Local Currencies First & Not the US Dollar

US Dollar USD Currency Chinese Yuan BRICS
Source: cryptopolitan.com

Similar to the phrase ‘America First‘, the BRICS bloc is now emerging to make ‘local currencies first’. The bloc is pulling every trick up its sleeve to sideline the US dollar for cross-border payments. From oil deals to copper trade and infrastructural loans, the alliance is aiming to push local currencies for settlements.

Also Read: New Oil-Rich Middle Eastern Country Extends Support to BRICS

While the scale of the transactions is small, the impact will be felt in the coming decades. The BRICS alliance confirmed that the de-dollarization agenda is a long-term goal and will continue the process for as long at it takes. Eventually, they believe, they could crack the code and topple the US dollar as the world’s reserve currency.

Also Read: BRICS: India Extends CBDC Payments to New Countries

Many other developing countries are keen on joining the bandwagon and could soon jump on the de-dollarization train. Several nations in Africa are on the sidelines and could seek the help of BRICS to put their local currencies to use. The move will strengthen their native economies and make businesses thrive. It will also provide a way for their local currencies to make a mark in the currency markets.

  • BRICS
  • Local Currency
  • US DOLLAR