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BRICS’ Bold Move. From Local Currencies to a Unified BRICS Currency: Redefining Global Trade and Challenging the Dollar.

 

Key Points on BRICS De-Dollarization Efforts and CIS Trade Developments 

1. BRICS and CIS Trade in Local Currencies:


Russian President Vladimir Putin announced that 85% of trade within the Commonwealth of Independent States (CIS) is now settled in local currencies, minimizing the use of the US dollar. This shift aims to increase financial autonomy among developing countries.

Although Russia is the only BRICS member within the CIS, it is actively promoting de-dollarization among neighboring countries, encouraging the use of national BRICS’ Bold Move. 

From Local Currencies to a Unified BRICS Currency: 
Redefining Global Trade and Challenging the Dollar.  in trade agreements.


2. BRICS’ Strategic Moves Against the Dollar:
At the 16th BRICS summit in Kazan, the alliance revealed a mock-up of a proposed BRICS currency, sometimes referred to as a "BRICS bill." This potential new currency is seen as a significant step towards challenging the US dollar’s status as the global reserve currency.

BRICS also expanded by adding 13 partner countries, though these are not full members, they are expected to increase trade and financial interactions within the BRICS framework, further reducing reliance on the US dollar.


3. Implications of De-Dollarization for the US Economy:
The shift away from the dollar poses risks for the US economy. A decrease in dollar demand could lead to economic deficits, inflation, and increased import costs for daily essentials in the United States. The dollar's reduced role internationally could destabilize the US economy, potentially leading to job losses and economic strain.

BRICS, alongside CIS nations, is accelerating this trend by encouraging other nations to adopt local currency-based transactions, creating a growing coalition for de-dollarization.


4. Strengthening Financial Sovereignty in BRICS and CIS:
Putin noted that BRICS and CIS members are not only de-dollarizing but also advancing technological sovereignty, making strides toward reducing reliance on Western imports and intellectual property.

This approach is part of a broader strategy to insulate BRICS economies from Western sanctions, fostering self-sufficiency and stability through independent financial and technological frameworks.


5. Potential Global Impact of a BRICS Currency:
If a BRICS currency is fully launched, it could significantly alter global financial dynamics by creating a new reserve currency that challenges the dollar and euro. This currency, facilitated by BRICS Pay, is designed to be used for international transactions within and beyond BRICS economies, gradually decreasing global dependence on the US dollar.


6. Conclusion:
BRICS is clearly positioning itself as a serious challenger to Western financial dominance. The strategic push to establish a BRICS currency, expand partnerships, and reduce dollar dependency represents a shift in global economic power.



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