Russia: Over 90% of BRICS trade now settled in national currencies

Russian Deputy Foreign Minister Sergei Ryabkov stated in an interview with Kazakhstani expert, journalist, and documentary filmmaker Akmaral Batalova that BRICS countries are progressing toward conducting settlements in their own national currencies.

“No one in the BRICS circle is raising the issue of replacing the dollar. Russian President Vladimir Putin has repeatedly said that recently we have found ourselves in a situation where the Russian Federation has been deprived of the opportunity to use the dollar in a large number of settlements due to blocking sanctions,” Ryabkov explained.

He emphasised the need for alternative payment methods, adding, “The necessary option for us is to look for alternatives in the form of mutual settlement mechanisms that would be sufficiently resistant to external negative influences and immune to such external measures.”

Highlighting the direction BRICS is taking, the senior diplomat noted, “The alternative of switching to settlements in national currencies is the path we are moving along within BRICS.”

Ryabkov further revealed that Russia has already surpassed the 90% mark of transactions conducted in national currencies in its trade with BRICS partners, underscoring the significant shift away from reliance on the dollar in these bilateral settlements.

Originally formed by Brazil, Russia, India, China, and South Africa, the BRICS grouping has recently expanded to include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, broadening its economic and geopolitical influence.

A core objective for the expanded BRICS bloc has been to strengthen economic cooperation and reduce dependence on the US dollar, which dominates global trade and finance. This reliance has exposed member states to financial vulnerabilities, particularly in the context of Western sanctions and geopolitical tensions.

Russia, heavily impacted by sanctions related to its actions in Ukraine, has been a leading advocate for increasing the use of national currencies in trade to enhance financial sovereignty. Other members, notably China and the newer entrants like Iran and Saudi Arabia, also support initiatives to promote currency diversification and reduce exposure to dollar fluctuations and sanctions.

BRICS has explored options including the creation of a shared currency or a basket of member currencies to facilitate intra-bloc trade and investment. However, economic differences and the complexity of supplanting the dollar have led the bloc to pursue a more gradual approach, encouraging bilateral settlements in national currencies.

By Tamilla Hasanova