Only 35% of Trade Among BRICS Countries Settled in the US Dollar

The BRICS alliance has taken its de-dollarization agenda quite seriously since 2022 and has begun using local currencies for settlements. The bloc is focused on strengthening its local currencies and using them for payments. This strengthens their GDP and also eases import and export transaction fees for businesses.

BRICS Settle 65% of Trade in Local Currencies, US Dollar Makes Just 35%

Pradip Dhir, the Director of Pranan Consulting, shared a report highlighting that the BRICS alliance has used the US dollar for only 35% of cross-border trade. The remaining 65% of transactions were made in local currencies. That’s a significant share in domestic currencies, leaving the US dollar far behind in transactions.

Trade between BRICS member China and Russia was heavily settled in local currencies and not the US dollar. India, in part, also paid in rupees, rubles, and dirhams for payments among BRICS members. In addition, Iran has been using the Chinese yuan for settlements due to sanctions by the US. All of these combined put local currency usage at 65%, compared to 35% in the US dollar.

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