EddieJayonCrypto
23 Oct 25
Russia is shifting 90-95% of trade with BRICS nations to local currencies, signaling a major challenge to the US dollar's dominance and reshaping global economic dynamics.
**Russia Reduces Reliance on US Dollar in Trade with BRICS Nations** Russia is increasingly bypassing the US dollar in its international trade, particularly with key partners India and China, as the country shifts toward using domestic currencies for the majority of its transactions. According to Alexander Novak, Russia’s Deputy Prime Minister, 90% to 95% of trade with these nations now occurs in local currencies, reflecting a broader trend of economic decoupling from the US-dominated financial system. Novak highlighted that the transition to national currencies is driven by market forces rather than policy mandates. “The market itself meets the need for settlements in national currencies,” he stated, noting that such arrangements are “automatic” and do not hinder trade. He attributed the shift to the reluctance of trading partners to engage in dollar-based transactions, which he described as the “hegemonic one.” This move aligns with broader geopolitical tensions, including US sanctions on Russia following its invasion of Ukraine. The shift also comes amid criticisms from US President Donald Trump, who previously accused BRICS—comprising Brazil, Russia, India, China, and South Africa—of targeting the dollar’s global dominance. However, the Kremlin has dismissed these claims, emphasizing that the alliance is a coalition focused on mutual cooperation and economic development. The BRICS nations have made significant strides in internal trade, with $1 trillion in transactions recorded between member countries, according to Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF). Dmitriev described the milestone as evidence of the bloc’s growing influence in shaping a new global economic architecture. “We continue strengthening business ties through the BRICS Business Council, as requested by President Vladimir Putin,” he said, underscoring the alliance’s role in fostering economic collaboration. The pivot away from the dollar underscores a broader reorientation of global trade dynamics. As BRICS nations expand their use of local currencies and deepen economic ties, they challenge the long-standing supremacy of the US currency in international commerce. This shift not only reflects geopolitical realignments but also signals a growing appetite for alternative financial systems in an increasingly multipolar world.