BRICS is surging ahead with the dedollarization drive, as Russian Foreign Minister Sergei Lavrov confirmed in an interview with Brazilian newspaper O Globo on April 28. According to a report by Tass, Lavrov revealed that in 2024, 90% of Russia's settlements with BRICS nations were conducted in rubles and other friendly currencies, marking a historic shift away from the U.S. dollar and Western payment systems.
Lavrov: 90% Local Currency Settlements in 2024
Lavrov emphasized that BRICS members have been working effectively to ensure uninterrupted payments. “We have been working within BRICS to ensure that there are no disruptions when carrying out payments and have been quite effective in our efforts,” he said. The data shows that the share of national currencies in Russia-BRICS trade surged to 90% last year, underscoring the bloc's determination to reduce reliance on the dollar. Lavrov attributed this trend to the West's misuse of financial hegemony: “No one wants to suffer from sanctions, considering that the West has been imposing them on undesirable countries by exploiting its monopoly on financial markets. Using reserve currencies as a competitive tool is unacceptable.”
He noted that the fragmentation of the global economy is pushing Global South and East nations toward dedollarization, driven by a lack of trust in Western-led international financial institutions. The move reflects a broader geopolitical realignment where sovereignty over payment systems is increasingly prioritized.
Building Resilient Payment Infrastructure
BRICS countries are actively constructing a cross-border payment and settlement infrastructure aimed at expanding the use of national currencies and creating autonomous systems free from external political pressure. Lavrov stated that these developments represent one of the defining global economic movements underway. The bloc is focusing on ensuring that payment channels remain resilient even amid geopolitical turbulence.
This push comes despite warnings from former U.S. President Donald Trump, who threatened tariffs on BRICS nations if they abandoned the dollar. Kremlin spokesman Dmitry Peskov previously downplayed the immediate prospect of a monetary union, emphasizing that BRICS is currently concentrating on establishing investment platforms in third countries. However, the 90% local currency settlement figure demonstrates that dedollarization is already a reality in trade flows.
Single BRICS Currency Still Premature
On the question of a common BRICS currency, Lavrov was cautious. “It would be premature to discuss a transition to a single currency for BRICS,” he stated, adding that discussions can resume once “the necessary financial and economic conditions are in place.” Peskov had echoed similar sentiments earlier, noting that monetary union is not the bloc's immediate focus. Analysts point out that the diversity of BRICS economies makes a single currency unlikely in the near term, but the steady shift to local currencies has already diminished the dollar's grip on member states.
In summary, Lavrov's remarks confirm that BRICS is executing a pragmatic dedollarization strategy at unprecedented speed. While the vision of a common currency remains distant, the bloc's accomplishments in local currency settlements are reshaping global financial dynamics in real time.