In a move that challenges the dominance of the US dollar in global trade, Russia and India, both members of the BRICS alliance, have completed a $4 billion arms deal using their local currencies. 

This transaction, which saw Russia purchasing Indian-made arms and equipment for defense purposes, was settled entirely in rupees and rubles, leaving the US dollar out of the equation.

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• $4 Billion Arms Deal Between Russia and India Conducted in Local Currencies.

• BRICS Nations Bypass US Dollar, Strengthen De-Dollarization Agenda.

• Russia Utilizes India’s Vostro Accounts to Circumvent US Sanctions.

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BRICS Bypasses US Dollar: $4 Billion Arms Deal in Local Currencies Shakes Global Trade

The $4 Billion Local Currency Arms Deal: A BRICS Playbook Move

The deal between Russia and India is a prime example of the BRICS playbook in action. 

The alliance continues to push for the use of local currencies in trade and strengthen its de-dollarization agenda. 

By conducting this multi-billion-dollar transaction in rupees and rubles, BRICS members India and Russia are solidifying their economic ties and demonstrating the viability of bypassing the US dollar in high-value trades.

Russia Bypasses US Sanctions with Vostro Accounts

To facilitate the $4 billion arms deal payment, Russian officials utilized India’s special Vostro bank accounts. 

These accounts, overseen by the Reserve Bank of India (RBI), allow 22 countries to transact in local currencies. 

This arrangement has enabled Russia to bypass US sanctions and continue conducting billion-dollar businesses without relying on the US dollar.

India Settles Trade with Russia in Local Currencies

The arms deal is not the only instance of India and Russia sidelining the US dollar in their trade relations. 

According to an anonymous official, Indian exports to Russia are also being settled using funds from the Vostro account, further strengthening the use of local currencies in bilateral trade.

BRICS Leads the De-Dollarization Agenda

The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, is at the forefront of the de-dollarization agenda, actively promoting the use of local currencies in international trade. 

As more developing nations follow the BRICS module, the upcoming decade is likely to pose significant challenges to the US dollar’s dominance in global financial transactions.

The Russia-India arms deal is a testament to the growing momentum behind the de-dollarization movement, as nations seek to reduce their reliance on the US dollar and strengthen their native economies and local currencies.

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