In a significant shift, the Central Bank of Russia reports that ruble settlements with African countries reached an unprecedented 72.1% in September 2024. The record highlights Russia’s growing efforts to reduce reliance on traditional Western currencies like the U.S. dollar and euro in international trade.
Key Highlights from the Central Bank Report
- Ruble Dominance in African Trade:
The share of payments in Russian rubles for imports and services reached a milestone of 48.5% in the same month, surpassing the previous high recorded in July. - Decline in Dollar and Euro Usage:
Payments in dollars and euros for imports with friendly nations across Africa, Asia, and Latin America dropped to 18.4%, signaling a broader trend of de-dollarization in Russia’s trade strategy. - Mutual Support for Local Currencies:
At the inaugural Russia-Africa ministerial conference held on November 9-10, participants emphasized the importance of expanding the use of national currencies in mutual trade and financial settlements, a sentiment that aligns with broader BRICS discussions on financial independence.
Future Prospects for a BRICS Common Currency
While discussions on a unified BRICS currency continue to gain traction, Russian President Vladimir Putin clarified during the Valdai International Discussion Club (November 4-7) that it is “too early” to create a single currency. The focus remains on fostering bilateral and multilateral trade using local currencies for now.
Strategic Implications
Russia’s move to prioritize ruble transactions, especially in African markets, is part of its broader strategy to build stronger economic ties with nations outside the Western bloc. As global geopolitics continue to evolve, such financial realignments could significantly impact international trade dynamics and currency usage.
