BRICS’s Russia Is Closely Looking Into U.S. Economy: Here’s Why

Sahana Kiran
Source – U.S. Embassy

The BRICS nations’ de-dollarization initiative has gained enormous traction and the support of other governments. The BRICS nations have kept their due diligence even as 24 countries prepared to accept a currency other than the dollar. Russia, in particular, has eyes on the U.S. economy.

Dmitry Peskov, the Press Secretary of the President of Russia revealed that the country has been closely monitoring the condition of the U.S. economy. The possibility for the government to stop defaulting on its debt commitments was considered as a reason. Peskov further added,

“We see that the U.S. economy, just as the global economy, is currently experiencing certain problems. Inflation expectations continue staying at a rather high level. Certainly, we are keeping a close eye on all that. All our fiscal agencies.”

Will Russia take advantage of U.S.’s debt ceiling crisis?

A debt limit problem is now plaguing the U.S. Earlier this week, Treasury Secretary Janet Yellen issued a warning, stating that if Congress does not increase or suspend the debt ceiling, the Treasury Department would not be able to pay all of the government’s financial obligations by June 1.

This concern was pointed out by former first lady, Hillary Clinton as well. In a recent opinion piece, Clinton highlighted that the U.S. defaulting on its debt obligations could pave the way for the downfall of the dollar. Her views seemed to be at par with Yellen’s recent statement. Clinton said,

“The debt ceiling debate is not about authorizing new spending. It’s about Congress paying debts it has already incurred. Refusing to pay would be like skipping out on your mortgage, except with global consequences.”

The former first lady had also expressed fear over Russia and China taking advantage of this issue. But Peskov pointed out that the debt ceiling matter isn’t new for the U.S. He further added,

“This occurs in the United States on an incredibly regular basis … They found solutions up to now. We will take a close look this time also.”