BRICS members China and Russia’s trade payments have experienced a drastic shift since 2022 after the White House imposed sanctions for invading Ukraine, and since then, the two countries have carried out 99.1% of all cross-border transactions in local currencies, such as the Chinese yuan and the Russian ruble.

Russian Deputy Prime Minister Alexander Novak told the Rossiya-1 TV channel that the two BRICS countries have raised their shares in local currency settlements, sidestepping the US dollar for trade. “As for transactions, 99.1% of them are conducted in the ruble and yuan,” he pointed out.

Just two months ago, the share of settlements in local currencies was at 99%. It saw an increase of 0.1% since September, and the numbers would only continue to surge. The BRICS members are committed to de-dollarization by pushing the US dollar out for trade and transactions among developing countries.

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BRICS: China & Russia Abandoning US Dollar, Prioritizing Local Currencies

BRICS members China and Russia are using every available opportunity to abandon the US dollar for cross-border trade. This makes them automatically use the Chinese yuan and the Russian ruble for transactions. It also helps them to strengthen their local currencies in the forex markets and stabilize their economy.

Apart from Russia, BRICS member China is also initiating deals without the US dollar with other developing countries. It comes in the form of loan repayments, Belt and Road Initiative (BRI), and new trade deals. The Xi Jinping administration is aiming to internationalize the Chinese yuan and bolster its usage.

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The US dollar has been at the receiving end of the BRICS alliance since 2022. The White House’s imposition of sanctions on other countries was the breaking point for the bloc. Since then, the de-dollarization agenda has only grown and could change the course of global trade.