In a notable development, BRICS nations are shifting their focus from creating a unified currency to enhancing local currency trade and payment systems. This strategic decision aims to bolster economic cooperation among member countries while reducing dependence on the US dollar, as The source notes that.
BRICS Countries Connect National Payment Networks
The BRICS countries, which include Brazil, Russia, India, China, and South Africa, have initiated the connection of their national payment networks. This includes:
- Russia's System for Transfer of Financial Messages (SPFS)
- China's Cross-Border Interbank Payment System (CIPS)
- India's Unified Payments Interface (UPI)
By integrating these systems, the bloc is facilitating trade in local currencies, thereby promoting economic collaboration.
Decline of US Dollar in BRICS Trade
As a result of this shift, the use of the US dollar in trade among BRICS nations has seen a significant decline. Notably, Russia and China have reportedly settled approximately 90% of their bilateral trade in rubles and yuan. This move not only reflects a growing trend towards de-dollarization but also underscores the BRICS nations' commitment to strengthening their economic ties and enhancing financial sovereignty.
The recent developments in BRICS nations' focus on local currency trade contrast sharply with the strengthening US dollar, which is impacting global markets. For more insights, see the article on the global currency market.
