In a significant move aimed at challenging the dominance of the United States dollar, India and Nigeria, both members of the BRICS alliance, have agreed to conduct their trade in their respective local currencies, according to a report by Watcher Guru.
The agreement, officially signed between the two nations, outlines a shift away from the greenback, with the majority of payments between them now set to be made in local currency.
BRICS, consisting of Brazil, Russia, India, China, and South Africa, was formed to foster closer cooperation and economic ties among its members, as well as to serve as a counterbalance to Western alliances.
The upcoming BRICS summit scheduled for October may see discussions regarding the introduction of a new currency, signaling further challenges to the supremacy of the US dollar.
Nigeria, in its bid to join BRICS, has expressed keen interest in becoming a member of the alliance.
The trade relations between India and Nigeria encompass various sectors including energy, pharmaceuticals, and transportation.
Trade statistics reveal a significant volume of commerce between the two nations, with trade amounting to $11.8 billion in FY 2022–2023, and reaching $7.89 billion thus far in FY 2023–2024.
This move by BRICS nations to conduct trade in local currencies could potentially exacerbate existing economic challenges faced by the United States, such as inflation and high levels of debt, leading to further uncertainties regarding the future of the US economy.
As BRICS nations explore alternatives to the US dollar for international trade, the global economic landscape may witness significant shifts in the coming years.
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