BRICS members UAE and China settled a cross-border transaction on Monday using the new Digital Dirham sidelining the US dollar.
This is the first-ever transaction made directly to China from the UAE using the new mode of payment with the Digital Dirham.
The direct trade settlement was initiated by the UAE through the ‘M Bridge’ platform making ways for BRICS to end reliance on the US dollar through digital methods.
BRICS, which since 2011 had been made up of Brazil, Russia, India, China and South Africa, roughly positions itself as the Global South’s answer to the Group of Seven (G7) major developed economies.
The Central Bank of new BRICS member UAE has put in place a platform to pay China in Digital Dirham, bypassing the dollar, with the first transaction occuring yesterday.
The UAE-China digital dirham transaction marks a significant step towards alternative trade settlement in the BRICS sphere, potentially challenging the US dollar’s dominance.
Nigeria seeks to become a member of the BRICS group of nations within the next two years as part of a new foreign policy push to have its voice heard in important global organizations as part of a new foreign policy push to have its voice heard in important global organizations.