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Putin claims that dumping US dollar enough to keep away politivs from economic growth
(MENAFN) During the 16th annual BRICS Summit in Kazan, Russian President Vladimir Putin underscored the importance of enhancing trade settlements in national currencies among BRICS member states, emphasizing that a move away from the US dollar is crucial for strengthening financial independence and mitigating geopolitical risks.
The BRICS group, which originally included Brazil, Russia, India, China, and South Africa, has recently expanded to include new members such as Iran, Egypt, Ethiopia, and the United Arab Emirates, who joined earlier this year. In discussions with Dilma Rousseff, president of the BRICS New Development Bank, Putin articulated that using local currencies instead of the dollar or euro would help keep economic development insulated from political influences, especially in the current global climate.
The backdrop to these discussions is the unprecedented sanctions imposed by the US on Russia following its invasion of Ukraine. These sanctions have prompted both Russia and its BRICS partners to explore alternative trade mechanisms. Notably, Russia’s major banks have been barred from the SWIFT international payment system since 2022, significantly impacting its ability to engage in traditional financial transactions.
Putin further noted that Russia is already in the process of transitioning to national currencies for cross-border trade with its BRICS partners. He mentioned that the group is collaboratively developing a payment and settlement framework to facilitate these trades.
In August, Russian Prime Minister Mikhail Mishustin revealed that over 95% of trade settlements between Russia and its largest trading partner, China, are now conducted using the ruble and yuan. This shift reflects a broader trend within BRICS nations as they seek to establish more autonomous economic relationships.
The BRICS group, which originally included Brazil, Russia, India, China, and South Africa, has recently expanded to include new members such as Iran, Egypt, Ethiopia, and the United Arab Emirates, who joined earlier this year. In discussions with Dilma Rousseff, president of the BRICS New Development Bank, Putin articulated that using local currencies instead of the dollar or euro would help keep economic development insulated from political influences, especially in the current global climate.
The backdrop to these discussions is the unprecedented sanctions imposed by the US on Russia following its invasion of Ukraine. These sanctions have prompted both Russia and its BRICS partners to explore alternative trade mechanisms. Notably, Russia’s major banks have been barred from the SWIFT international payment system since 2022, significantly impacting its ability to engage in traditional financial transactions.
Putin further noted that Russia is already in the process of transitioning to national currencies for cross-border trade with its BRICS partners. He mentioned that the group is collaboratively developing a payment and settlement framework to facilitate these trades.
In August, Russian Prime Minister Mikhail Mishustin revealed that over 95% of trade settlements between Russia and its largest trading partner, China, are now conducted using the ruble and yuan. This shift reflects a broader trend within BRICS nations as they seek to establish more autonomous economic relationships.
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