Russia has pledged to pursue de-dollarization initiatives throughout its chairmanship of BRICS in 2024.
In continuation of the overarching theme that guided the BRICS alliance throughout the previous year, Russia has emphasized that prioritizing the abandonment of the US Dollar is the foremost objective for 2024. Notably, Russia is poised to assume the chairmanship of the group this year, and discussions at a recent gathering of BRICS Sherpas and Sous Sherpas on Monday underscored the current financial landscape of the global economic order as a critical point of collaboration.
This statement was made during the gathering, which saw representation from all BRICS nations, including the five newest expanded countries. Notably, this gathering marked the inaugural occasion where Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia convened with the original alliance founders.
The BRICS economic coalition has witnessed substantial growth over the past year, marked by its first expansion since 2001 in 2023. The group reasserted its commitment to the de-dollarization agenda, prompting various initiatives aimed at diminishing the global dominance of the US dollar.
Despite the commencement of a new year, the alliance remains dedicated to these endeavors, as evidenced by a recent BRICS meeting where Russia declared de-dollarization as the alliance's top priority for 2024. Russia outlined economic measures geared towards facilitating greater international usage of local currencies.
These measures include an escalation in the use of local currencies in bilateral trade among BRICS members, the establishment of an independent BRICS payment system free from reliance on the US dollar, and the promotion of the utilization of the BRICS currency reserve to underpin international financial transactions.
Russia anticipates that implementing these measures will contribute to diminishing the global hegemony of the US dollar and fostering greater stability in the international financial system. During the meeting, Sergey Ryabkov, a Russian diplomat, articulated the intention to explore avenues for increased utilization of national and local currencies in cross-border transactions, with the aim of mitigating the adverse effects of the current global economic system.
Russia took the lead in advocating for BRICS de-dollarization plans following Western sanctions imposed after the Ukraine invasion, which intensified concerns among alliance members about the weaponization of the US dollar. The overarching objective is to decrease dependence on the dollar and enhance the prevalence of local currencies, a goal that, though born out of necessity, has significantly shifted the global perspective away from the widespread acceptance of the US dollar as the paramount force in international economics.