With the BRICS bloc firmly committed to de-dollarization policies over the last several years, the alliance has recently said the process is well underway and cannot be stopped. Indeed, Russian Foreign Minister Sergey Lavrov spoke at a news conference discussing the grouping’s position on the greenback.
Lavrov stated that “Saudi Arabia is thinking how to reduce dependence on the dollar,” Russian state media reported. Additionally, Lavrov discussed the bloc’s plans for its own payment system. He noted that the project is in development with “recommendations to be present by the summit,” taking place this year.
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BRICS Affirms Commitment to Ditching the US Dollar Globally
In July, Russia and India struck a monumental $100 billion trade deal. The agreement targets increased bilateral relations over the next six years. Moreover, it established increased trade dealings in local currencies. It followed a similar deal that Russia made with Iran earlier this year.
The BRICS bloc is clearly challenging the US dollar, and Russia’s Sergey Lavrov recently said that de-dollarization is a process that cannot be stopped. On the heels of those meetings and agreements, the grouping appears fortified in its resolve.
“All are trying to make themselves safe,” Lavrov said. Speaking of the West’s misplaced position, he said, “Information leaked not long ago that… the United States and the whole collective West want to seal Russian money.” Thereafter, he revealed Saudi Arabia’s seeking ways to reduce dollar dominance.
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“The process of de-dollarization is underway, it cannot be stopped,” Lavrov said. Additionally, he discussed “ideas of creating alternative payment platforms, payment and account settlement mechanisms” at the 2023 Summit. Furthermore, he notes that “BRICS Finance Ministers and heads of central banks” are working together on the project.
This year, news surfaced of a BRICS payment system in development. Iran recently affirmed its desire for that payment system to connect all of the collective’s central banks. These kinds of initiatives open the door for the bloc to continue decreasing US dollar activity. Which could have massive effects on the currency.