BRICS shifts to national currencies amid US dollar decline

Russian Foreign Minister Sergey Lavrov has confirmed the growing trend of dedollarisation within the BRICS bloc, highlighting an increasing shift toward national currencies in trade.  

In a recent interview with Brazilian newspaper O Globo, Lavrov explained that BRICS members have been actively working to ensure stable payment systems, reducing reliance on the U.S. dollar.  

According to Lavrov, Russia’s settlements with BRICS countries have seen a significant shift, with the ruble and other national currencies accounting for 90% of Russia’s transactions in the bloc by 2024.  

Lavrov also pointed out the global economic fragmentation as a driving factor behind this shift.  

“No one wants to suffer from sanctions, considering that the West has been imposing them on undesirable countries,” he said.  

“Using reserve currencies as a competitive tool is unacceptable.”  

This sentiment reflects the growing mistrust of Western financial institutions, particularly in the Global South and East, prompting nations to seek more autonomous economic systems.  

BRICS is focusing on creating resilient payment systems to minimise external political pressures.  

Lavrov added that the construction of a cross-border payment and settlement infrastructure is part of the effort to expand the use of national currencies.  

However, he cautioned that the idea of a single BRICS currency is premature.  

“We can return to the question about a common currency or a single payment unit once the necessary financial and economic conditions are in place,” he said.  

Kremlin spokesperson Dmitry Peskov also stated that BRICS is concentrating on investment platforms rather than pursuing monetary union.