BRICS nations, led by Russia, are beginning to chip away at the dollar.
As we reported earlier this month, Russia and China are now settling oil payments in yuan, a move that western analysts say is responsible for Russia overtaking the Saudis as China’s leading oil exporter. Iran (not a BRICS member, but considered a key partner, as well as a potential member) has also sent clear signals that it wants to abandon the dollar: Tehran is now demanding euros for all oil sales.
While these developments have so far centered around oil, Moscow is looking to conduct all trade in national currencies. Moscow and New Delhi are already drawing up the plans:
India and Russia are developing a road map for mutual settlements in national currencies which could open prospects for both countries, India’s Ambassador to Russia Pankaj Saran told RIA Novosti on Wednesday.
“Transition to mutual settlements in national currencies of the BRICS looks promising. Russian and Indian companies are interested in using national currencies in trade settlements,” he said, adding that there is already a mechanism in place for them to use.
According to the ambassador, New Delhi and Moscow aim expanding economic and trade cooperation. They have already chosen priority sectors such as agriculture, pharmaceuticals, jewelry, technical equipment and machinery, oil and gas, and textiles.
The decision is expected to drastically boost trade between the two countries. Russia and India are hoping to triple trade to $30 billion over the next ten years. The two nations have also signed a number of landmark defense and energy deals. New Delhi has already approved the purchase of five S-400 air defense systems.
BRICS is dumping the dollar — and Russia is leading the charge.