Three BRICS members Russia, India, and China kick-started the de-dollarization agenda by settling a portion of their trade in local currencies and not the US dollar. The three countries have been partially successful in their quest as several oil deals were traded in local currencies. Even Saudi Arabia joined the bandwagon by purchasing Russian oil and discounted prices and laundering it across Europe. Impressed by the success of de-dollarization, several countries in the African continent have come forward with plans to sideline the US dollar.
Also Read: BRICS: De-Dollarization Is Unstoppable
Many African countries were on the sidelines as de-dollarization kicked steam but are now interested in joining the fold. BRICS member Russia has partnered with several African countries to use local currencies and not the US dollar for trade. The Russian-African partnership forum published on their website that they’re working on the importance of expanding local currency usage.
“We stress the necessity to expand the use of national currencies in trade and financial transactions between the Russian Federation and the states of the African continent,” read the statement. “We stress the necessity to expand the use of national currencies in trade and financial transactions between the Russian Federation and the states of the African continent,” the ministry said.
Also Read: BRICS: A World Without the US Dollar, Myth or Reality?
BRICS Making the African Continent Ditch the US Dollar
The BRICS alliance is now making many countries in the African continent stop relying on the US dollar for trade. Russia has taken up the initiative to spread the de-dollarization agenda in Africa. Also, the continent could gain support from the bloc and strengthen their local currencies in the market.
Also Read: JP Morgan Says BRICS Payment System Can Weaken US Dollar
Moreover, Africa had never got an opportunity to take on the US dollar and BRICS is making it a reality. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.