Following the theme that led the BRICS alliance throughout last year, Russia has said that ditching the US Dollar is 2024’s top priority. Indeed, the country is set to embrace the chairmanship of the group this year. Subsequently, it discussed the current financial reality of the global economic order as its most pressing point of cooperation.
The statement was made at a recent gathering of BRICS Sherpas and Sous Sherpas that took place Monday. There, all BRICS nations were represented, including the five newest expanded countries. Moreover, the gathering was the first time that Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia gathered with the alliance originators.
Russia Committed to De-Dollarization During 2024 BRICS Chairmanship
Throughout the last year, the BRICS economic alliance experienced notable growth. Indeed, the collective enacted its first expansion effort since 2001. Moreover, they committed wholeheartedly to its de-dollarization plan. Subsequently, various initiatives to lessen the prevalence of the US dollar on a global scale.
Although the new year is upon us, the collective is still committed to those endeavors. That was seen in a recent BRICS meeting where Russia noted that ditching the US Dollar was the alliance’s top priority for 2024. Specifically, referencing economic facets that would serve the goal of greater local currency promotion internationally.
“In line with the decision of the BRICS leaders in Johannesburg, we will explore ways to make greater use of national and local currency and payment instruments in our cross-border transactions,” Sergey Ryabkov stated during the meeting. Moreover, he added that this would be done “to reduce the negative side effects of the currency global economic system.”
Russia spearheaded the BRICS de-dollarization plans after Western sanctions were imposed following the invasion of Ukraine. That weaponization of the greenback instilled renewed fear in fellow alliance members.
Therefore, the goal of lessening overall reliance on the dollar, and increasing local currency prevalence, was born. Although created out of necessity, the bloc has certainly shifted the global perspective away from mass acceptance of the US dollar as the be-all and end-all of international economics.