BRICS Struggles with Russia’s Push to Ditch Dollar for Settlements

TLDR

• Russia is struggling to convince the BRICS nations to adopt a cross-border settlement system independent of the U.S. dollar.
• Despite challenges, Russia continues to push for direct trading between BRICS countries using national currencies.
• Russian Finance Minister Anton Siluanov emphasized that not all BRICS members are ready to abandon dollar settlements.
• Siluanov predicted that the demand for an alternative BRICS settlement system will increase if the U.S. imposes more restrictions.
• Russia is focused on ensuring stable settlements rather than pursuing full de-dollarization amid the dollar’s growing unreliability.

Russia’s effort to establish an alternative settlement system within BRICS has faced significant hurdles. Despite this, Moscow continues to push for direct trading in national currencies. Russian officials argue that this move would help bypass reliance on the U.S. dollar, especially under external pressures.

BRICS States Not Ready to Abandon the Dollar

Russian Finance Minister Anton Siluanov recently discussed the challenges of establishing a cross-border settlement system for BRICS countries. He explained that while the idea remains a priority, not all member states are ready to participate. Siluanov added that many countries still prefer to use the dollar for international transactions unless restricted.

Siluanov acknowledged that the BRICS settlement system could gain traction if the U.S. imposes more restrictions on its partners. He emphasized that countries in the group already engage in direct trade using national currencies to reduce their dependence on the dollar. This shift, according to Siluanov, may accelerate if the U.S. takes further steps to limit access to the dollar.

He highlighted that such a system would become more essential as the demand for a reliable alternative platform increases.

Russia Maintains Focus on Stable Settlements, Not De-dollarization

Despite the setbacks in launching a BRICS settlement platform, Russia remains focused on ensuring stable trading mechanisms. Siluanov clarified that Russia does not aim for total de-dollarization but seeks to protect the stability of settlements.

The Russian minister pointed out that BRICS countries now settle directly in their national currencies. He noted that Russia has already laid the groundwork for the use of cryptocurrencies in trade through its experimental legal regime (ELR). This legal framework allows Russian businesses to bypass sanctions by using digital assets for international transactions.

The use of modern financial technologies, including cryptocurrencies, is gaining attention within the BRICS nations. Iran, which joined BRICS in 2024, has been vocal about using crypto in cross-border transactions. Other members, such as Belarus, have also suggested that digital currencies could reduce the dominance of the U.S. dollar in global trade.

Despite these challenges, Russia remains determined to advance its agenda. Moscow continues to explore ways to facilitate more autonomous economic relations within BRICS, minimizing reliance on the U.S. dollar.

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