BRICS Countries Shift Majority of Trade to National Currencies, Moving Away from the US Dollar
Member countries of the BRICS alliance—Brazil, Russia, India, China, and South Africa—along with newly associated nations such as Ethiopia, Egypt, Indonesia, Iran, and the United Arab Emirates, are increasingly conducting trade in their national currencies rather than the US dollar. According to recent reports, over 65% of trade among BRICS nations is now denominated in their own currencies.
Russian Foreign Minister Sergey Lavrov recently confirmed this shift during the conclusion of the BRICS Foreign Ministers’ Meeting held in Brazil. He stated that the transition away from the US dollar reflects the bloc’s strategic commitment to strengthening financial sovereignty and reducing dependency on Western-dominated financial systems.
Lavrov further revealed that discussions are underway regarding the establishment of an independent payment platform known as “BRICS Pay”—a system intended to facilitate transactions among member countries using their own currencies.
This initiative aligns with the agreements reached by BRICS finance ministers and central bank governors during the Kazan Summit, where the use of national currencies in mutual trade was emphasized as a key priority.
In line with this development, Ethiopia has not only joined BRICS but has also taken significant steps to reinforce its financial integration with the group.
The country recently applied for formal membership in the New Development Bank (formerly known as the BRICS Development Bank) and expects the accession process to be finalized in the near future.
Since February 2025, Ethiopia has entered into bilateral agreements with Russia to conduct trade in the Ethiopian birr, bypassing the US dollar entirely. Additionally, Russia has extended similar arrangements to several countries, including South Africa, Morocco, Algeria, Egypt, Tunisia, Mexico, Argentina, and Nigeria—allowing for cross-border trade outside of dollar dependency. Notably, Ethiopia and the United Arab Emirates, both BRICS member countries, have also agreed to conduct bilateral trade using their respective national currencies.
This move signifies growing momentum within the BRICS bloc toward building a multipolar financial system.
However, former US President Donald Trump had previously threatened to impose sanctions on countries choosing to bypass the dollar in international trade—a stance that adds geopolitical weight to the financial decisions being made by BRICS members.
Overall, the shift among BRICS nations toward trading in national currencies represents a transformative step in global trade dynamics, signaling the emergence of a more diversified and decentralized financial order.
Ethio Negari
