BRICS member Russia had openly called the US dollar a “toxic” currency in June this year. The country doubled down on de-dollarization efforts and President Vladimir Putin called both the US dollar and Euro “toxic currencies.” Putin slammed the US and Western allies for pressing sanctions on its economy for invading Ukraine. However, despite calling the US dollar “toxic”, Russia has secretly imported $30 million in USD bills into the country.
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The latest data shows that Russia’s state-run military firm Rosoboronexport has imported nearly $29.21 million worth of $100 US dollar currency bills into the country. The currency imports came from Rwanda and was initiated by their Defense Ministry on January 23, 2024. The state-run company imported the US dollar bills much before the BRICS country called the currency “toxic”.
In addition, another firm named Aero-Trade, which deals in duty-free shopping at airports brought in the US dollar into Russia. Aero-Trade placed two different orders for the currency bills worth $20 million and another 20 million in the Euro. Reuters could not identify the location from where the shipment filled with US dollar bills initiated by Aero-Trade came from. The transactions come at a time when BRICS is looking to cut ties with the US dollar.
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BRICS Needs the US Dollar
The BRICS country Russia which called the US dollar “toxic” is importing the USD to keep its economy afloat. The currencies are mostly coming from countries like Rwanda, Turkey, and the United Arab Emirates (UAE). These countries have not imposed any restrictions on Russia and continue to initiate business deals as usual.
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The development indicates that BRICS countries need the US dollar to make local businesses survive and thrive. The USD delivers better returns while local currencies cannot withstand the whips of the volatile forex markets. This shows that the USD is king and cutting ties with the currency comes with a price.