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Russia pivots to local currencies amid dollar concerns

Russia pivots to local currencies amid dollar concerns

GrafaGrafa2024/11/07 07:37
By:Mahathir Bayena

Russia is advancing its shift away from reliance on the U.S. dollar, emphasising the use of local currencies in international trade.

Kremlin spokesman Dmitry Peskov underscored that Russia's efforts are not intended to challenge the U.S. dollar but to safeguard its economic interests.

"We are not attempting to defeat the dollar and it is not needed to attempt to have the victory over it. The dollar is one of world’s currencies. This is the currency of one of the largest global economies," Peskov stated, according to Tass.

Peskov criticised the “weaponising” of the dollar, expressing that its use as a political tool has brought unintended consequences.

“I regret saying this world’s economy, probably made a mistake at its folly and started weaponising the dollar. This is their mistake. They simply did not understand consequences.” he added.

Russia has already established the use of national currencies with multiple countries, ensuring that a substantial share of trade is settled without the dollar.

"We are not doing it against the dollar, we do it for ourselves, for our partners. And therefore we have already achieved the use [of national currencies] with the whole range of countries, and we make the lion’s share of our mutual settlements in local currencies, in national currencies," Peskov elaborated.

At the recent BRICS summit in Kazan, discussions focused on economic cooperation and joint investment initiatives rather than the creation of a unified BRICS currency.

Peskov described the summit as “extremely fruitful,” with significant outcomes and wide representation.

However, the idea of a single BRICS currency was not a main topic.

Peskov noted that while not all nations are ready for a comprehensive alternative payment system, there is an increasing recognition of the need for options beyond the U.S. dollar.

"Countries, certainly, start thinking more and more that reserve, alternative methods of making payments are needed, and the alternative money transfer system," he said.

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