Phasing out the dollar: Russia significantly increases ruble share in export settlements with BRICS

Russia’s trade turnover with its partners from BRICS – Brazil, India, China, and South Africa – totaled $125 billion last year, according to data from international audit and consulting firm FinExpertiza.

Over the five-year period, the country’s share of export settlements in rubles with the bloc’s trade partners increased more than seven times to 6.3 billion in the dollar equivalent, data showed. Moscow also boosted the share of settlements in euro by almost eight times.

The share of payments in national currencies between the BRICS nations has also risen by more than three times to $2.7 billion.

“The share of settlements in dollars between the BRICS countries is systematically decreasing… In general, the share of US dollar in Russian exports to the BRICS countries declined by 20 percent, accounting for 77 percent, or $51 billion,” said the authors of the report.

As for the Russian imports, the share of greenback decreased by 18 percent since 2013 to $42.4 billion. The share of settlements in euro rose 9.3 percent to $2.8 billion.

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“An increase in commodity turnover became the driver for switching to settlements in national currencies between the BRICS countries while reducing the share of settlements in dollars…” said Elena Trubnikova, the chairwoman of FinExpertiza’s board.

She explained that the current volume of trade between Russia and China has ensured mutual demand for the two countries’ national currencies.

FinExpertiza also noted significant increases in the use of national currencies between Russia and India, saying their settlements in dollars fell by 40 percent.

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