The US dollar has dominated global banking as the primary reserve currency for a staggering 80 years. But now, the supremacy of the dollar was being challenged. BRICS, which stands for Brazil, Russia, India, China, and South Africa, has been actively working to change the global financial system and lessen its need for the US dollar through de-dollarization.
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Is Russia Taking The Lead In De-Dollarization?
As more countries stand up for alternatives to the U.S. dollar in international transactions, Russia is changing the face of global banking. The country is doing so by shifting away from the dollar and toward local currencies. Dmitry Peskov, a spokesperson for the Kremlin, stressed on Wednesday that Russia is dedicated to safeguarding its own national interests and is not trying to weaken the US currency. He said,
“We are not attempting to defeat the dollar and it is not needed to attempt to have the victory over it. The dollar is one of the world’s currencies. This is the currency of one of the largest global economies. I regret saying this world’s economy, probably made a mistake at its folly and started weaponizing the dollar. This is their mistake. They simply did not understand consequences.”
In addition, he also noted how Russia wasn’t doing this to take down the dollar. But the government was doing it for partners and, of course, themselves. Peskov added,
“And therefore we have already achieved the use [of national currencies] with the whole range of countries, and we make the lion’s share of our mutual settlements in local currencies, in national currencies.”
He, however, noted how countries are still hesitant about closing interaction with the dollar. The introduction of an alternative currency could come as a shock to many.
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Looking Deeper Into The Latest BRICS Meeting
The latest BRICS summit took place in Kazan, a southwestern city in Russia. Peskov called it “extremely fruitful.” He highlighted the wide representation, large number of attendees, crucial conversations, and noteworthy results for Russia and other interested nations.
In addition, he revealed that the agenda included economic and financial cooperation. But, he noted that as it is still implausible, there was no meaningful discussion on establishing a unified BRICS currency and take down the US dollar. He said that the BRICS countries instead concentrated on creating collaborative investment platforms to help in the growth of their less developed members.
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