On the heels of the de-dollarization agenda, BRICS member India and the African nation Nigeria have agreed to use local currencies for bilateral trade and not the U.S. dollar. The two countries officially signed a trade agreement where the majority of payments will be settled in local currencies ditching the U.S. dollar.
In FY 23-24, trade between the two countries reached $7.89 billion. BRICS members have been finding new countries since 2022 to push the de-dollarization agenda ahead and are succeeding in their motives. The main goal of the bloc is to uproot the US dollar as the world’s reserve currency and replace it with local currencies.
“Both sides agreed to the early conclusion of the Local Currency Settlement System Agreement to further strengthen bilateral economic ties,” the ministry said. If BRICS begins to sign deals with new countries without using the dollar, the US economy will be at risk. The next few years will be challenging for the prospects of the US dollar.
