Russia has a new plan to stop using US dollars. This de-dollarization initiative was announced at the 2024 BRICS Summit. The plan lets BRICS countries trade gold, silver, and diamonds without using dollars at all.
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Exploring Russia’s Strategy to Leverage Precious Metals for De-Dollarization
The New Trading System
BRICS countries will trade precious metals directly with each other. Putin explained why: “We see the feasibility in creating a separate BRICS platform for precious metals and for diamonds. This market is indeed excessively regulated by various trade barriers in circumvention of the universal certification scheme of the Kimberley Process.” This vision aligns with their goal of de-dollarization.
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Common Standards to Replace USD
BRICS agreed to new trading rules in the Kazan Declaration. They stated: “We support efforts to increase the turnover of precious metals within BRICS based on common quality standards.” These rules will replace the old system of pricing in US dollars and contribute to the de-dollarization process.
Direct Trading Mechanisms
The new system lets members trade metals using their own money. Xi Jinping stressed this need: “There is an urgent need to reform the international financial architecture, and BRICS must play a leading role in promoting a new system that better reflects the profound changes in the international economic balance of power.” The de-dollarization strategy is a significant part of this reform.
Mark Thompson explained what this means:
“By advocating for the use of cryptocurrencies, BRICS nations are taking a proactive stance in redefining international trade dynamics. This strategy could lead to a more decentralized global financial system, where digital assets play a pivotal role in facilitating cross-border transactions.”
Implementation Steps
Dr. Emily Carter described how it works:
“The BRICS summit’s focus on cryptocurrency as a means to bypass sanctions highlights the increasing importance of digital currencies in geopolitical strategies. This move not only challenges the current financial hegemony but also underscores the potential of blockchain technology in shaping future economic landscapes.”
This inclusion of digital currencies is a key component of their de-dollarization efforts.
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Sarah Lee explained the benefits:
“The integration of cryptocurrencies into BRICS’ economic strategies signifies a significant shift towards financial autonomy and innovation. This approach can potentially weaken the influence of traditional financial powers and pave the way for a more diversified and resilient global economy.”
The move is a strategic element of their overall de-dollarization plan.
The system starts in 2025. It will let BRICS countries buy and sell precious metals without using US dollars, advancing their de-dollarization goals further.