The BRICS economic group is changing its global trading strategy significantly. They are moving away from its historical dependence on the US currency. Sameep Shastri, vice chairman of the BRICS Chamber of Commerce and Industry, highlighted this dedollarisation trend in a recent interview. Shastri said the BRICS countries relying less on dollar in international commerce. They are choosing to conduct business primarily using their currencies.
The BRICS dedollarisation effort is a component of a larger plan to increase member countries’ economic independence. It is part of the plan to subvert the Western economies’ long-standing hegemony in international commerce. Regarding the BRICS bloc’s rising economic power, Shastri singled out Russia, India, and China. Thus implying that these countries are driving change in the international financial system.
How the BRICS Countries Are Dedollarising Their Economy
The BRICS countries are working together to dedollarise their economies. The BRICS dedollarisation movement indicates that they are trying to use less dollars in international trade. On Monday, Tass interviewed Sameep Shastri about shifting economic factors.
Shastri stressed that BRICS countries are trading in their national currencies. These include the Russian ruble, Indian rupee, and Chinese yuan instead of the U.S. dollar. He said, “I think we are going to see dedollarization soon. We have already started our trade using rubles and rupee and yuan and rupee, our own currencies, and we do not attach much value to dollar anymore.” Shastri stressed the need to strengthen national currencies and economies. He said, “We should not be dependent on one single currency. We should be dependent on our own currency, and we should make it strong and make our economy strong.”
This year, the BRICS economic bloc added Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia. This is in addition to its founding members, which are Brazil, Russia, India, China, and South Africa.
Furthermore, Shastri said that the Global South is becoming more powerful economically. This challenges the idea that Western nations have the greatest economy. He highlighted the increasing clout of China, Russia, and India in the international economy. He stressed, “If you just look at Russia, India, and China — we are very strong three nations among the growing economies.”
“India has become the fifth largest economy, so we are proving to the world that self-reliance is very important now,” he added. Despite their physical separation, Shastri reaffirmed that the BRICS nations are achieving strategic and durable growth. Thus establishing them as major actors in the international arena.
The Expansion of BRICS and Its Impact on Dedollarisation
The BRICS dedollarisation efforts have taken on a new dimension. This comes with the recent addition of Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia to the BRICS group. This growth provides the EU with more economic and geopolitical clout. In addition, it opens up new possibilities for dedollarisation initiatives.
UAE and Saudi Arabia’s engagement in global oil trading might speed up the BRICS dedollarisation process. The dollar’s position as the world’s principal petrocurrency might be severely challenged. This will be so if these nations accept oil payments in currencies other than the US dollar.
In addition, the combined economic and demographic might of the BRICS countries is greater than before. Therefore giving it more clout in determining global economic policy and standards. This may inspire other countries to diversify their currencies and trading patterns. Hence, it would give the BRICS dedollarisation initiatives more impetus.
BRICS dedollarisation: The Evolving Landscape of Global Finance
There has been a dramatic change in the international economic scene due to the continuing BRICS dedollarisation initiatives. The BRICS countries are actively working to diversify their currencies away from the dollar and into international commerce. This is leading to a more multipolar global financial system.
Aiming for more economic independence and sovereignty, BRICS member states are moving away from relying on the dollar. The BRICS nations want to strengthen their economic independence. They intend to protect their economy from outside influences by decreasing reliance on a single global currency.
The BRICS dedollarisation process, however, is intricate and will most certainly take a long time to complete. It calls for a change in global economic standards and the creation of new financial infrastructure. The market closely monitors how this process impacts international commerce, currency markets, and the global economy. Deythere monitors the long-term viability of the price hike as it is contingent upon variables.
