Another case of de-dollarization by the BRICS nations emerges as Bangladesh pays a nuclear plant loan to Russia in Chinese yuan. The payment is estimated to be around $318 million in Yuan.
Due to Western sanctions on Russia, Bangladesh could not pay in US dollars. This development follows US Treasury Secretary Janet Yellen’s previous statement regarding sanctions potentially harming the US dollar’s standing.
De-Dollarization in focus: Bangladesh-Russia loan payment in Yuan
In recent weeks, the desire for BRICS nations to reduce their reliance on the US dollar has become more evident. A prime example is Bangladesh’s Chinese yuan payment of a nuclear plant loan to Russia.
As reported by Business Insider, this event is among the most notable instances of de-dollarization. Bangladesh agreed to pay Russia approximately $318 million worth of Yuan for the nuclear plant loan payment, as sanctions on Russia hindered US dollar-based transactions.
The sanctions, enacted due to Russia’s actions in Ukraine, highlight the diminishing dominance of the US dollar in international transactions.
Before the agreement, Russia had hesitated to accept payment in yuan, fearing losses from insisting on ruble-based payments. However, the loan payment has now been officially made in Chinese currency.
This payment is a partial reimbursement for a $12 billion loan provided by Moscow to the South Asian country. The funds will contribute to constructing a nuclear power plant near Dhaka, the capital city of Bangladesh.