BRICS Country Turns To Chinese Yuan To Cut US Dollar Dependency
Indonesia, a new BRICS member, is accelerating its de-dollarization efforts by launching foreign exchange operations in Chinese yuan and Japanese yen. The MOVE aims to reduce reliance on the US dollar and boost Local Currency Transactions (LCT), allowing direct settlements without dollar conversion.
Bank of Indonesia Senior Deputy Governor Destry Damayanti confirmed cross-border yuan transactions with China have surged, with monthly LCT values reaching $1 billion. The yuan-centric strategy strengthens Indonesia's domestic forex market while circumventing dollar-based conversion costs.
This development signals the yuan's growing role as a dollar alternative in global trade settlements. BRICS nations continue challenging dollar hegemony through local currency initiatives, with Indonesia's pivot reflecting broader geopolitical realignments in international finance.
