BRICS leaders reaffirmed at their summit their intention to expand trade in local currencies to reduce dependence on the U.S. dollar. However, experts say the bloc lacks the unified financial and macroeconomic infrastructure needed to replace the inherent liquidity and trust of the dollar, which still accounts for 89% of the forex market. The main obstacles remain the lack of financial integration, deep trade imbalances and distrust between key members, particularly between China and India, whose bilateral trade deficit reached $112.16 billion. While Russia and China now settle nearly 90% of their trade in rubles and yuan, concrete progress toward coordinated de-dollarization within BRICS remains limited, with intra-BRICS trade representing only 5% of global trade. U.S. President Donald Trump has also threatened the group with 100% tariffs if it created a new currency to replace the dollar.
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