BRICS Accelerates De-Dollarization with 50% of Trade Settled in Chinese Yuan
The BRICS alliance has reached a pivotal moment in its de-dollarization efforts, with half of all intra-bloc trade now settled in Chinese yuan. According to OMFIF data, the group's cross-border transactions increasingly bypass the USD through multilateral currency arrangements. Russia-India crude deals exemplify this shift, having saved New Delhi $7 billion in forex fees through ruble-rupee settlements.
While yuan usage among BRICS members signals growing momentum for alternative reserve currencies, its global impact remains limited. The Chinese currency accounts for just 2% of worldwide payments compared to the dollar's 88% dominance in forex markets. This disparity underscores the structural challenges facing any potential dollar challenger.
