The BRICS countries, in particular Russia, China, and India, are trading goods in Rubles, Yuan, and Rupees bypassing the US dollar as the preferred currency: the latest significant trade involves Russia’s purchase of weapons worth $4 billion, paid to India in local currency.
The United States’ global sovereignty over trade is now numbered.
All the details below.
Russia buys weapons from India paying $4 billion in local currencies: BRICS opposes the US dollar, including China
According to reports from local Eastern media, later confirmed by Watcher.Guru, the Russia-India axis of the BRICS alliance is trading a large amount of military armaments in local currencies, bypassing the US dollar from its role as the preferred currency for international trade.
More specifically, Russia is buying weapons produced by its Indian ally for a value of $4 billion in Rupees.
Mosca has stated that this is a move to support the defense of the country from Ukrainian settlements, and that it will continue to trade with New Delhi also various machinery, car parts and engineering goods.
By doing so, the BRICS confirms its stability and internal autonomy, accelerating the de-dollarization process started since last year.
BIG NEWS
Russia buys India-made defence equipment and armaments worth $4 billion
Russia also paid in Indian Rupees & not dollar.
India exports machinery, auto parts and other engineering goods to Russia. Russian funds (in rupees) have also been invested in Indian… pic.twitter.com/cII4UIYZZs
— Times Algebra (@TimesAlgebraIND) May 11, 2024
India today joins the privileged club of arms suppliers of Russia along with Iran and North Korea, further strengthening the “special and privileged strategic partnership” between the two nations.
It is clear how the Soviets want to take advantage of India’s rapidly growing economy and increasingly diversify its Asian partners away from China, being able to definitively abandon dependence on the US dollar:
Both India and Russia have already seen a 25-fold increase in trade to over 50 billion dollars/year since the start of the special military operation in Ukraine, with aggressive plans to reach over 100 billion dollars/year in the next 5 years.
Even de-dollarization efforts are accelerating with trade, not only military but also related to the food, energy, and industrial supply chain) conducted in local currencies according to the rupee-ruble friendship agreement.
The latest $4 billion arms trade is just the tip of the iceberg of a recently strengthened collaboration, which has also seen Russia involved in investing in Indian government treasury bonds.
One year ago, as reported by Prof. Michele Geraci, trade between Russia and India had encountered some difficulties due to the second’s inability to export enough goods to allow an accumulation of Rupees at the Russian Central Bank.
Today things, especially considering the need for an arms race, seem to have definitely changed.
La #Russia che vende petrolio all’#India non può continuare ad accettare rupie perché un accumulo eccessivo della moneta indiana creerebbe problemi alla Banca centrale russa perché non avrebbe come spenderli
In altre parole l’India non esporta abbastanza da scambiare le sue… pic.twitter.com/mJX52e833B
— Prof Michele Geraci, fmr Undersecretary of State (@michele_geraci) July 3, 2023
The next decade will be challenging for the US dollar as many other developing nations are following the BRICS model, following the de-dollarization agenda.
China and Russia join forces in the de-dollarization process: 90% of trades in Rubles or Yuan
The de-dollarization process involves not only the two countries mentioned above but also and above all China, the main technological rival of the United States since 2010, which with its Yuan is trying to put sticks in the wheels of the US dollar.
Recently, Russian president Vladimir Putin and Chinese president Xi Jinping met to discuss the relations between the two BRICS nations and how to promote the mission of the alliance. Both leaders had agreed to enhance global partnership and strategic operation of their respective economies.
The meeting highlighted the intention to strengthen the commercial relationship between China and Russia, announcing that 90% of the exchanges will be conducted in Rubles or Yuan.
90% of all trade between China and Russia is conducted in Ruble or Yuan after ditching the US Dollar. pic.twitter.com/kLuoGwMSL4
— BRICS News (@BRICSinfo) May 16, 2024
The final step of the diplomatic relationship between the two world superpowers strengthens the solidity of the BRICS alliance and pushes other nations to join the group and abandon their dependence on the US dollar.
In August 2023 Egypt, Ethiopia, Iran and the United Arab Emirates joined the alliance, expanding a reality born in 2009 from the union of India, China, Russia and Brazil.
China in particular has always been at the forefront in trying to hinder the advancement and dominance of the US dollar.
The latest move involving the Chinese yuan and the Russian ruble is a huge step towards de-dollarization and the promotion of local currency.
It is worth noting how the BRICS is also working on a common currency to be used within the bloc to support internal trade, in addition to the local currencies already in use.