The threat of dedollarization of global trade has gone beyond the stage of rhetoric. Determined to dethrone the greenback, China and Russia plan to conduct this year 260 billion dollars of trade without using a single dollar.

The information was conveyed on X by the famous Indian geopolitical analyst S.L. Kanthan, who predicts that this initiative will soon become widespread within the BRICS. Indeed, last year, China and Russia had conducted several official trade transactions in yuan and ruble.

Likewise, Russia has for some time been conducting transactions in yuan with several countries, including Japan, the United Arab Emirates, Singapore, Malaysia, Thailand, the Philippines, Mongolia, and Tajikistan.

By accelerating the dedollarization of its trade with Russia, China continues its ambition to dethrone the USA, which is currently the world’s leading economic power. The country announced an economic growth of 5% in 2024. It is also one of the largest investors in gold in 2024, the asset to which the future currency of the BRICS is expected to be pegged.

To counter the plan of the two influential BRICS members in favor of dedollarization, American authorities are playing the sanctions card. Indeed, the Russian-Chinese project to limit trading in American dollars comes in the context of the Russo-Ukrainian conflict.

The USA, therefore, threatens Chinese banks that conduct transactions with Moscow with sanctions, forcing them to reject payments in Russian ruble. These are threatened with being accused of aiding the Kremlin to fight Ukraine.

However, a Reuters report reveals that American authorities would have adopted a diplomatic resolution approach to cool down the fervor. We will see if this prevents Palestine from joining the BRICS after the US veto prevented its full accession to the UN.