Indian experts say BRICS countries see dollar losing dominance in global trade

BRICS countries are increasingly moving away from reliance on the US dollar, opting instead to trade using their national currencies, according to Sameep Shastri, Vice Chairman of the BRICS Chamber of Commerce and Industry.

Dedollarisation Efforts

Shastri indicated that the BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, has already begun trading in Russian rubles, Indian rupees, and Chinese yuan. He stated that these nations no longer prioritise the US dollar in their trade activities, reflecting a significant shift towards economic independence.

Economic Self-Reliance

Highlighting the importance of economic self-reliance, Shastri argued that BRICS nations should focus on strengthening their own currencies and economies rather than depending on a single currency like the US dollar. He suggested that this approach would enable these countries to bolster their economic stability and global influence.

Earlier this year, the BRICS economic bloc expanded to include Egypt, Iran, the United Arab Emirates, Saudi Arabia, and Ethiopia. Shastri noted that this expansion further strengthens the bloc's position in the global economy.

Challenging Western Dominance

Shastri also challenged the perception that Western nations hold the strongest economies, asserting that the economic power is increasingly shifting towards the Global South. He pointed to the growing influence of Russia, India, and China, describing them as powerful players among emerging economies.

Despite the geographical distances between them, Shastri emphasised that BRICS countries are experiencing strategic and sustainable growth, positioning themselves as significant contributors to the global economy.

The move away from the US dollar by BRICS nations highlights the potential risks of overdependence on a single currency in global trade. While this strategy may strengthen their economic independence, it also introduces challenges in maintaining stable trade relations with countries still reliant on the dollar.