Using currencies outside of the dollar for international trade is fast catching on. Russia, and organizations like the BRICS group of nations, particularly in partnership with African countries, is at the forefront of this movement.
The use of the Russian rubles in 2023 for international trade increased across numerous continents including Africa, the Americas, and Asia.
A report by Sputnik Africa showed that the use of the Russian currency for trade between Russia and Africa has more than doubled since 2022.
This information is according to the Central Bank of Russia which disclosed that the percentage in rubles of Russian-African settlements doubled in 2023 compared to the year prior.
In 2022, the percentage of Russia-African trade transacted in rubles came in at 21.9%, while 2023 figures were twice that at 48.1%.
The Russian Central Bank also reported that there has been a substantial rise in the amount of ruble settlements in other regions outside of Africa including with American countries. The trade-in rubles between American countries and Russia rose from 22.7% to 35.1%. Likewise with Asian nations, the ruble’s percentage increased from 20.5% to 24%.
According to the statistics, the percentage of payments made in hostile currencies (such as the US dollar, euro, and others) has dropped dramatically from 45.1% to 20.5%.
The shift toward local currency transactions represents a turning point in the development of the world economy. For the foreseeable future, the dollar will definitely continue to dominate international banking. Still, the emergence of local currency trading indicates a larger move towards a more decentralized and multipolar monetary system.