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BRICS seals deal for international trade settlements in national currencies

Author: Content Editor
The BRICS countries (Brazil, Russia, India, China, and South Africa) have made a deal to settle international trade in their national currencies, aiming to reduce the dominance of the US dollar. Russia is leading the effort as it seeks to break free from Western sanctions and is pitching a new "multicurrency payment system" to protect participating countries from pressures like US sanctions. However, it may face resistance as India and the UAE continue to heavily rely on the US dollar in cross-border trade. Russia hopes to gain traction by expanding the system to include new members such as Iran, UAE, Ethiopia, and Egypt, and by establishing a network of banks to handle transactions and centers for mutual trade in commodities. China, which wants to boost its own currency's role in global trade, is backing the de-dollarization effort and may join with Russia to make the multicurrency system a reality. The BRICS countries have also agreed to pool $100 billion in foreign currency reserves to support each other during financial crises.

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