Putin claims US conducting ‘big mistake’ by arming dollar
Date
11/6/2024 7:37:39 AM
(MENAFN) At the BRICS Summit in Kazan, Russian President Vladimir Putin strongly criticized the practice of using the US dollar as a geopolitical tool, calling it a "big mistake" that undermines the currency's credibility and global trust. His comments came in support of a statement by Dilma Rousseff, the president of the New Development bank (NDB), who highlighted the detrimental effects of the US's actions on global finance.
Rousseff expressed concern that the weaponization of the dollar, particularly through sanctions, has had severe consequences on global geopolitics and the livelihoods of populations. She noted that since the escalation of sanctions against Russia, Western companies from sectors ranging from food and clothing to automotive manufacturing have been forced to exit the country. In addition, sanctions have severely curtailed the ability of ordinary Russians to travel and make international transactions, further isolating them from the global economy.
Putin agreed with Rousseff’s assessment, emphasizing that the use of the dollar as a tool for achieving political aims is damaging to its standing as the world’s primary reserve currency. He warned that this approach is eroding trust in the dollar, diminishing its role in global finance. "The dollar remains the most important instrument of world finance," Putin said, "but using it as a means to pursue political goals undermines confidence in this currency and reduces its global capabilities."
While Russia does not seek to eliminate the dollar from the global financial system, Putin stated that the country has been increasingly restricted from engaging with it due to the sanctions imposed by the West. He pointed out that as a result of these restrictions, Russia has been forced to look for alternative financial systems and currencies to facilitate its international trade and economic transactions. "When we are prevented from working with the dollar, we are forced to search for other alternatives," Putin explained.
Putin's remarks reflect Russia's growing frustration with the economic isolation it faces, particularly as the US and its allies continue to use the dollar as a tool to exert pressure in response to geopolitical tensions. As Russia explores alternatives, the global financial system could see more significant shifts in the years ahead, with countries seeking to reduce their reliance on the dollar to protect themselves from such political and economic risks.
MENAFN06112024000045015687ID1108856803
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.