While CBN Fights Dollarization of Naira, BRICS Sets to Ditch US Dollar for Chinese Yuan

BRICS members, China and Russia are looking to ditch the U.S. dollar and take loans in Chinese Yuan as one of their several options to cut dependency on foreign currency, hence promoting local currencies.

China and Russia are the major flag bearers of de-dollarization initiatives and are committed to convincing other Association of Brazil, Russia, China, India, and South Africa (BRICS) members of adoption.

The Finance Minister of Russia, Anton Siluanov, said that the country is considering discussions with China for the possibility of getting loans in Chinese Yuan while ditching the U.S. Dollar.

In the attempt to suffocate the dollar as more countries join the geopolitical bloc, including Egypt, Ethiopia, Iran, and the United Arab Emirates, with interests of over 34 countries willing to join, have shown trust in the BRICS alliance, especially on distancing themselves from the US dollars.

However, Siluanov confirmed that Russia wants loans in Chinese Yuan and not the U.S. dollar as he revealed that Moscow is awaiting approval from Beijing as the discussions unfold.

According to RIA news agency, Siluanov explained that the loan deal has yet to materialize as no decision has been made yet.

 Negotiations with Chinese partners have been going on for a long time. So far there is no decision. We discussed this topic at the end of last year at the inter-ministerial dialogue, he said.

With Russia’s request for loans, if approved by China to be disbursed in Chinese Yuan, billions of U.S. dollars will be ditched far away from the global stage, yet stand to take the hardest hit at the financial markets.

Meanwhile, Africa’s largest market bank, the Central Bank of Nigeria, is in an unending fight against the dollarization of Nigeria’s financial market.

Want to read more? BRICS: The Future of Global Currency

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Mayowa Durosinmi

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M. Durosinmi is a West Africa Weekly investigative reporter covering Politics, Human Rights, Health, and Security in West Africa and the Sahel Region

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