Despite Russia’s efforts to distance itself from the US dollar, Putin acknowledges that it remains the dominant global currency.
Vladimir Putin has recently acknowledged the reality that he has been attempting to deny. Despite the best efforts of BRICS to break free from the US dollar’s influence, it continues to be the most potent instrument in global finance.
Putin emphasised during the annual summit he is convening in Kazan that the United States has been employing the dollar as a political instrument to penalise nations that fail to adhere to its regulations. In his own words:
“They are employing the dollar as a weapon. Our perception of this reality is actually accurate. I am of the opinion that those who participate in this activity have made a substantial error.”
The Russian president contended that the financial independence of any nation that may be affected by such actions is at risk due to the unilateral sanctions implemented by the United States, which have had a detrimental impact on Russia.
Russia and China have implemented a significant initiative to diminish their dependence on the US currency. Putin claims that the Russian ruble and the Chinese the yuan dominate approximately 95% of the commerce between the two nations.
This is an effort by Russia and China to transition from Western-dominated financial systems, a goal that Putin has been advocating for with great force. He aspires to broaden the scope of this endeavour beyond himself and China.
Putin is urging the BRICS nations to identify an alternative to conventional Western financial networks, such as SWIFT. He informed the world’s authorities that:
“We are not the ones who are unwilling to utilize the dollar. However, what are our options if they refuse to permit us to work? Our circumstances necessitate that we investigate alternatives.”
In addition, Putin suggested the establishment of a new BRICS investment mechanism to facilitate economic cooperation among member states and to provide financial assistance to developing nations in the Global South.
He is of the opinion that this platform would be a potent instrument for encouraging the industries of the BRICS countries. Nevertheless, Putin’s proposals are not universally appealing. Brazil and India, two of the five members of the BRICS, have expressed a concern.
They remain apprehensive about the bloc’s potential transformation into an anti-Western alliance that is dominated by China, as this could potentially erode their bilateral relationships with the United States.
In the interim, Putin extended a warm welcome to leaders who are eager to break free from the financial shackles of the United States at the summit. Recep Tayyip Erdogan, the President of Turkey, was one of these leaders.
Erdogan’s attendance at the summit was noteworthy due to his status as the sole leader of a NATO nation. The individual is renowned for his habit of addressing Putin as a “beloved friend.”
Erdogan appears to be resolute in his commitment to fortify his relationships with both the West and Russia, despite the fact that this does not always work well with his NATO allies.
Also Read: Ethereum “Verge” update lets nodes run on phones and smartwatches instead of just computers
Wallets