Russia, India, and Africa Push Forward with Dedollarization in Trade

Russia, India, and several African countries are stepping up efforts to conduct trade using their national currencies rather than the U.S. dollar. This push marks a broader movement toward dedollarization, aiming to enhance economic sovereignty by reducing dependency on the dollar for international trade.

During the first ministerial conference of the Russian-African Partnership Forum in Moscow, leaders underscored the significance of using local currencies to strengthen financial independence and shield their economies from dollar fluctuations. The conference participants released a joint statement, through Russia’s Foreign Ministry, affirming the value of this approach: “We underline the importance of expanding the use of national currencies in trade and financial transactions between the Russian Federation and the states of the African continent.”

The forum also discussed enhancing transport corridors to support this emerging trade structure, noting the importance of securing supply chains to facilitate uninterrupted commerce. “We stress the necessity of ensuring their security in accordance with international law,” the statement read. Additionally, officials at the conference advocated for greater collaboration between the Eurasian Economic Union (EAEU) and African trade groups to promote free trade.

India and Russia Deepen Economic Ties with National Currency Settlements

India has also advanced its dedollarization efforts with Russia, especially as global trade conditions shift. At a business forum in Mumbai, Indian Foreign Minister Subrahmanyam Jaishankar expressed support for using national currencies in trade with Russia. “Mutual settlement of trade in national currencies is of great importance, especially in the current circumstances,” Jaishankar noted.

He highlighted the role of Special Rupee Vostro Accounts (SRVAs) in facilitating these transactions. SRVAs allow Indian banks to hold rupees on behalf of foreign banks, helping maintain trade balance with national currency settlements. Jaishankar pointed to a customs agreement signed in May 2024 as a critical step in streamlining trade operations between the two nations.

The Russian-Indian business forum also saw the signing of six Memorandums of Understanding (MoUs), further strengthening their economic partnership. Recent initiatives from BRICS, including increased use of national currencies and the establishment of joint investment platforms, have fostered trade resilience within member countries.

By advancing dedollarization, these nations are aiming to bolster their economic sovereignty and reduce their exposure to dollar-driven market pressures.