BRICS: New trading system presented to replace the US dollar

BRICS: New trading system presented to replace the US dollar

The Brics economic alliance has taken a significant step and presented a new trading model to replace the US dollar in all member countries. Russia and Iran have already announced a pioneering trade agreement that should have a huge impact on the greenback.

Numerous trade agreements were signed in 2024, led by Russia. Moscow has had talks with North Korea, India and Iran to further promote the efforts to do this. You have worked specifically to create new trade mechanisms that are no longer dependent on the dollar.

The Brics Alliance has dominated the geopolitical discussions in recent years. In 2023, the first expansion has been integrated since 2001, whereby Iran, Egypt, Ethiopia and the United Arab Emirates (VAE) joined the alliance. These countries then adopt the alliance's de-dollarization strategy.

milestone in Brics cooperation

According to the recent announcement of renewed trade relationships between Russia and India outside of the US dollar, the BRICS block has revealed a new trading model without US dollar dependency. Russia and Iran in particular have presented a potentially pioneering trade agreement.

ilya Zaripov, professor at Plekhanov Russian University of Economics, spoke in an interview about the current work of the Allianz. He emphasized the advantages for local currencies by these agreements. "Iranians will be able to withdraw ruble from their cards in Russia, and Russians get real from Russian banking cards," said Zaripov. "This will promote mutual tourism flow and business contacts and create a basis for joint investment projects." Source: Valery Sharifulin (TASS)

The step is undoubtedly beneficial for BRICS cooperation and could serve as a model for all countries. Above all, the use of greenback in business transactions could decrease considerably because the currency gains value within the block. The advantages are likely to increase with the introduction of a Allianz's own payment system.

opportunities and perspectives

The efforts to do the DE dollarization have gained driving in the Brics countries, in particular through the large number of trade agreements that Russia initiated. North Korea, India and Iran are just a few of the countries with which Moscow strives for increased cooperation outside the dollar. This new orientation aims to reduce financial dependencies and achieve greater economic autonomy.

The expansion of Brics memberships in 2023, including prominent countries such as Iran and Egypt, underlines the growing importance of this economic alliance. Their ongoing efforts to do-dollarize the geopolitical changes and efforts reflect on establishing a new economic order. The introduction of local currencies for international transactions within the BRICS block could create a precedent and serve as a blueprint for other countries that want to go similar paths.

This new trade model shows that the Brics countries are seriously working on developing independent economic systems that avoid the US dollar. In this respect, this strategy could have far -reaching effects on global trade flows and financial markets. Particularly noteworthy is the view of a native Allianz payment system that could make the Greenback in many business areas.

Environmental and Economic implications of the BRICS trade model

The new trading model of the BRICS countries could have a significant impact on the global economy and the environment. The cancellation of the US dollar as a primary trading currency could lead to destabilization of international financial markets. Countries that depend heavily on the dollar would have to reorient themselves and could face economic turbulence at short notice.

At the same time, the model also offers opportunities. The use of local currencies could reduce exchange rate fluctuations and strengthen regional economic growth. This could lead to better use of resources and an ecologically sustainable economy.

economic advantages

Strengthening local currencies could reduce the import costs for emerging countries, since they often have to keep high foreign exchange reserves in US dollars in order to fulfill international trade obligations. This binds resources that could be used for domestic economic development. Furthermore, companies in BRICS countries could become less dependent on global financial markets and exchange rate risks, which could lead to increased economic stability.

Statistics and data

The effects of the DE dollarization by the BRICS countries can already be read on some key indicators. According to the International Monetary Fund (IMF), the proportion of the US dollar in the global foreign exchange reserves in 1999 fell to less than 59% by the end of 2022. This development is expected to be continued because more and more countries complete trade agreements in local currencies

A study by the Bank for International Payment Compensation (BIZ) showed that the BRICS countries made around 40% of global growth in 2023. These countries could continue to gain in importance by increasing use of their own currencies and make their economic growth more independent of the US dollar.

trading volume

Background information

The de-dollarization is a process that has been initiated by many emerging countries and developing countries in order to achieve more financial independence. Historically speaking, countries that mainly relieved their reserves and trade agreements on the US dollar had to struggle with economic volatility and dependencies that disabled their national development goals.

With the rise of Brics nations-Brazil, Russia, India, China and South Africa-as important global economic actors, the role of the US dollar is increasingly being questioned. These countries have started to develop new financial instruments and trade agreements in order to consolidate and diversify their economic power.

A remarkable example in the recent past is China's introduction of the “Petro-Yuan”, a strategy for the price determination of oil purchases in Chinese currency. This is part of a more comprehensive trend of the BRICS countries to promote alternative financial infrastructures that are not based on the US dollar.

These complex developments can be sworn on the websites of serious sources such as Iwf , biz and tass become.