VTB Bank’s latest data show BRICS settled about 60% of cross-border transactions in local currencies, leaving roughly 40% in the U.S. dollar. This shift aims to boost member currencies and reduce reliance on the dollar amid sanction risks.
“Over the years, they have gradually transitioned to a settlement system that hardly uses the dollar or the euro,” said VTB CEO Andrei Kostin, stated. (Ed. note: Data refers to cross-border settlements among BRICS members.)
Most local-currency settlements occur among Russia, China, and India, the bank reported. The data also indicate many payments to Iran use local units.
The Russian ruble, Chinese yuan, and Indian rupee are widely accepted within the bloc. Russia has taken the Chinese yuan for trade for close to four years.
India has paid for some Russian oil in the rupee and the ruble, with portions settled in the yuan. These arrangements reduce exposure to dollar-based payment channels.
BRICS officials say sanctions and U.S. policy motivate the de-dollarization push. The bloc seeks to strengthen national tenders and lift local currencies in global forex markets.
Members contend local currencies could play a larger role over the coming decade, potentially shifting parts of the global monetary system.
