According to the BRICS representative of India, the bloc is making efforts to prepare the BRICS currency for launch in the next 3-4 years, expected in 2027.
Binod Singh Ajatru, director of the BRICS Institute in New Delhi, told the Indian news agency Sputnik about the alliance's plan to eliminate the US dollar in BRICS currency.
The US dollar still dominates, he said. To eliminate the USD, we must show strong economic growth. If Russia, India and China continue to grow rapidly, we may have a common currency by 2027.
Mr. Ajatshatru is optimistic that BRICS can successfully eliminate the USD during this period.
We are one of the fastest growing markets, Ajatshatru added, detailing India: We have to buy goods from three different trading partners. If India pays in BRICS currency, we will save a lot, it could be 40-50 billion USD a year".
BRICS has launched a de-dollarization program after the US imposed sanctions on Russia in February 2022 over its military campaign in Ukraine. Russia and China are trying to convince developing countries to eliminate the US dollar in trade. The two countries have sharply reduced their share of US dollar and transactions in rubles and yuan.
Federal Reserve Governor Christopher Waller admitted that the White House's imposition of sanctions on developing countries has prompted BRICS to launch a de-dollarization agenda.
If these sanctions and policies continue, the changing context of cross-border payments, including the rapid growth of digital currencies, could also challenge the dominance of the US dollar, said Governor Christopher Waller.
Mr. Waller explained that China and Russia are taking advantage of the geopolitical situation and promoting BRICS' de-dollarization initiative. Not only Russia and China, but even BRICS members India and the new member UAE are supporting the de-dollarization agenda through transactions in local currencies, not the USD.
If the de-dollarization trend continues, BRICS will benefit while the US will suffer losses on the global financial stage. About 90% of bilateral trade between Russia and China has been paid for in rubles and yuan.
Some BRICS members such as India and the UAE are also paying in Chinese yuan for some cross-border transactions. However, Waller noted that despite the threats, the US dollar will lead all major local currencies.
