BRICS' 3 Strategic Steps to De-Dollarization

EDITOR'S NOTES

In a chilling display of economic defiance, the BRICS alliance has ignited the de-dollarization process, threatening the very foundation of American financial dominance. Fueled by sanctions against Russia, this bold coalition—led by Russia and China—has persuaded developing nations that their economic sovereignty is at the mercy of US whims. By settling payments in local currencies, urging global partners to abandon the dollar, and creating independent payment systems, BRICS is crafting a new world order. As this movement gains momentum, the US faces a grim future where its dollar is no longer the world’s primary currency, signaling a potential collapse of its economic empire.

Eric Blair Jul 9, 24

The BRICS alliance kick-started the de-dollarization agenda in 2022 after the US pressed sanctions on Russia for invading Ukraine. Russia and China started the de-dollarization agenda by showing developing nations that their economies are under threat from the US. They convinced other countries that the US could sanction their economies at any time. This led to fears that their economies were not safe and the need to safeguard their currencies from the US dollar.

The US Treasury Secretary Janet Yellen also confirmed that sanctions led BRICS to kick-start the de-dollarization agenda.

brics de dollarization us dollar usd currency

Source: iStockphoto

BRICS is advancing in its de-dollarization agenda by putting local currencies ahead of the US dollar for global trade. Several nations are looking to strengthen their native economies and boost their local currencies in the international markets. According to them, the BRICS bloc is the only glimmer of hope that can make them achieve the results of de-dollarization. The three ways that BRICS kick-started the de-dollarization initiative are below.

Settling Payments in Local Currencies

The BRICS members are re-working bilateral trade deals and settling cross-border transactions in local currencies. They are showing other countries how de-dollarization needs to be done.

Convincing Other Countries To Ditch The US Dollar

Russia and China are on a world tour on de-dollarization convincing other developing countries to start settling trade in local currencies. They are educating developing nations on the need to strengthen their native economies and boost their currencies on the global stage.

Integrate New payment Systems Without the US Dollar

BRICS member countries are also integrating new payment mechanisms for the smooth functioning of local currency transactions. The new payment systems will not include the US dollar for transactions, thus forging ahead in the de-dollarization agenda.

This article originally appeared on Watcher Guru.