Russia Sidelines US Dollar, Settles 85% BRICS Trade in Local Currency

• Russia Leverages Local Currency to Fortify Economy and Elude US Sanctions
• Majority of Russian Trade Settled in Local Currency Over US Dollar
• Nabiullina on the Shift towards Local Currency
• Russia and Iran Sever Ties with SWIFT Payment System

Russia Leverages Local Currency to Fortify Economy and Elude US Sanctions

In a bold move meant to bolster the national economy and sidestep US sanctions, Russia, a BRICS member, has been accepting the Russian Ruble, its local currency, for trade settlements. As of January 2024, the proportion of Russia's trade transactions in local currency with other BRICS members reached a staggering 85%. This strategic move puts Russia in a beneficial position as the Ruble is now being utilized for cross-border transactions by BRICS members, helping to keep the Russian economy buoyant despite the impositions by the US.

Majority of Russian Trade Settled in Local Currency Over US Dollar

Elvira Nabiullina, Russia's Central Bank Governor, affirmed that BRICS members are increasingly settling their trade with the Ruble, bypassing the US dollar. She emphasized that trade settlements from BRICS countries in local currency have seen a surge, doubling in just the last two years. Trade transactions in the local currency Ruble, which were previously at 40% in 2021, now stand at an impressive 85% in 2024, marking a significant increase of nearly 113% in two years.

Nabiullina on the Shift towards Local Currency

The share of Russia's settlements in national currencies with fellow BRICS countries has increased to 85%, up from just 26% two years ago, Nabiullina informed RIA Novosti on a Tuesday. She elaborated that the coercive sanctions implemented by the US on developing countries served as a catalyst for them to seek an alternative and abandon the dollar.

Russia and Iran Sever Ties with SWIFT Payment System

Adding another layer to the economic shift, Russia, along with Iran, has officially ceased all ties with the SWIFT payment system and will no longer use it for transactions. Russia confirmed that it is building a new payment system, and notably, the US dollar will not be a part of it. This pivotal move allows Russia to maintain its autonomy in global trade and remain unaffected by the US sanctions.

Edited by Jonathan Stoker