BRICS currency: 7 Countries using local currencies for trade

In this video, our goal is to provide a summary of the most recent international transactions conducted by BRICS nations, including the newly added members, without using US dollars. In recent years, there has been a growing interest among nations, particularly emerging economies like those within the BRICS bloc, in diversifying away from the traditional dominance of the US dollar in international trade and transactions. This shift stems from various motivations, including the desire to reduce dependence on a single currency and to mitigate risks associated with geopolitical tensions and fluctuations in US economic policies. BRICS nations have embarked on initiatives aimed at promoting the use of their own currencies in international trade and finance. These efforts have included the signing of currency swap agreements among member countries, facilitating trade and investment using local currencies and bypassing the need for US dollars. For instance, China, as a key player within the BRICS group, has established currency swap lines with several member nations, promoting trade in yuan. While the share of BRICS currencies in global trade settlement has been gradually increasing, it remains relatively small compared to the dominance of the US dollar. As of recent statistics, the US dollar constituted a significant portion of global trade invoicing, while BRICS currencies accounted for smaller percentages, ranging from around 1-15% depending on the specific currency. However, despite the efforts to promote non-US dollar trade, several challenges persist. These include limitations such as limited convertibility of some BRICS currencies, insufficient infrastructure for clearing and settlement in non-US dollar currencies, and lower liquidity and depth of their markets compared to the US dollar. Additionally, there may be lingering trust and confidence among international traders and investors in the stability and liquidity of the US dollar. Looking ahead, BRICS countries continue to explore avenues for promoting non-US dollar trade, including strengthening currency swap arrangements, enhancing financial infrastructure, and fostering economic cooperation among member nations. However, the extent to which non-US dollar currencies will gain prominence in international trade will depend on various factors, including economic policies, market developments, and geopolitical dynamics.