In the wake of BRICS initiatives, a new financial alliance has emerged, accelerating the global shift away from the US dollar. The Commonwealth of Independent States (CIS), composed of 12 countries, has transitioned to using national currencies for 85% of its cross-border transactions this year, largely abandoning the US dollar in the process.
This shift by CIS adds further pressure on the US dollar, as both BRICS and CIS move forward with de-dollarization efforts. The CIS bloc includes Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. The push to trade in local currencies, rather than relying on the dollar, was led by Russia, with the other member nations agreeing that this approach would benefit their economies.
Russian President Vladimir Putin highlighted the success of this strategy at a recent CIS summit, stating, “The use of national currencies is widening in mutual payments. Their share in commercial operations among CIS participants has already been above 85%.” He emphasized that Russia’s goal is to have both BRICS and the CIS fully transition away from dollar dependency for all trade and transactions.
Putin also pointed to the broader implications of this move, noting that the shift to local currencies would enhance regional economic cooperation and grant developing nations greater financial independence. He further remarked that the rapid progress in this de-dollarization effort strengthens Russia’s technological and economic sovereignty.
As the de-dollarization trend, initially driven by BRICS, now spreads to the CIS, the future of the US dollar on the global stage appears increasingly uncertain. Should this momentum continue, the US could face significant economic consequences, including potential deficits and inflation within its own borders.
