The Biden administration is facing backlash as the BRICS countries have pledged to reduce their trade dependency on the US dollar, leading to growing concerns about the decline of US global influence.
The combined GDP of the BRICS nations accounts for 29% of the world’s total output, and there has been a concerted push to shift away from the US dollar in their trade dealings.
During a recent Russia-China Financial Dialogue forum in Beijing, the Russian Prime Minister, Mikhail Mishustin, announced that both countries have completely abandoned the use of Western currencies in bilateral trade, including the US dollar.
This move indicates a significant shift in global trade dynamics, with Russia and China setting an example by prioritizing their own national currencies in trade settlements.
According to Mishustin, the share of national currencies in mutual settlements between Russia and China has increased to the point where they have completely eliminated the use of third-country currencies, emphasizing the success of their dedollarization efforts.
The economic ties between Russia and China have reached $200 billion, marking a substantial achievement in their trade relations. However, it is worth noting that this figure is still calculated in US dollars, highlighting the strong influence of the American currency in global trade metrics.
Russia is also urging other BRICS member countries to develop financial relations and establish mechanisms for settlements within the bloc, indicating a broader effort to reduce reliance on the US dollar in international trade dealings.
This sentiment was echoed by Russian Finance Minister Anton Siluanov, who emphasized the need to further develop financial cooperation within the BRICS nations. He highlighted the potential for creating a payments system that would be independent of the existing infrastructure, which does not always align with the goals of individual countries.
The dedollarization efforts are part of a broader shift within the BRICS group, which includes Brazil, Russia, India, China, and South Africa, to facilitate payments in local currencies between member nations and reduce their dependency on the US dollar.
The increasing push for dedollarization comes at a time when the Biden administration has been criticized for its ineffective foreign policies, which have raised concerns about the decline of American soft and hard power on the global stage.
As the BRICS nations continue to pursue alternative trade mechanisms and reduce their reliance on the US dollar, the Biden administration is facing mounting pressure to restore America’s standing in the global economy and maintain its influence in international trade relations.
