In a recent announcement by the Russian Foreign Minister, it was revealed that Russia is shifting to a national currency for settlement, moving away from using the US dollar for international settlements. The minister highlighted that Russia’s efforts to shift towards settlements in national currencies have been gaining momentum, resulting in a decline in the US dollar’s share. This move reflects Russia’s desire to reduce its dependency on the US currency and increase its economic sovereignty.
Russia’sForeign Minister Sergey Lavrov affirms active transition to national currency settlements with partners, anticipating increased momentum in moving away from the US dollar. Lavrov emphasizes that this shift extends beyond Africa to Latin America, Asia, Iran, India, and China, with the US dollar’s share steadily declining.
Momentum Builds for De-Dollarization Trend
According to Tass, RRussia’sleading news agency, Russian Foreign Minister Sergey Lavrov stated on Monday that the use of national currencies for settlements between Russia and its partner countries would increasingly gain traction. When asked about Kenya’splan to pay for oil exports in its local currency, Lavrov commented:
“Of course, as trade turnover grows, the transition to payments in national currencies will become more practical — this is the future. This is true not only for Africa, but also for Latin America, our Asian friends, as well as Iran, India, and China.”
“The shift to settlements in national currencies is already underway, with the declining share of the dollar,” continued the Russian Foreign Minister, expressing confidence that this process will continue to gain momentum.
Furthermore, the Foreign Minister highlighted Brazilian President Luiz Inácio Lula da Silva’s proposal to prioritize the creation of an autonomous payment system that is not reliant on the US dollar or the euro. This proposed system would be developed through decisions and agreements within the framework of the BRICS New Development Bank.
Brazilian President’sDe-Dollarization advocacy & push for BRICS Currency
A strong advocate for de-dollarization, the Brazilian president has actively encouraged developing countries to move away from the US dollar as a reserve currency and instead utilize national currencies in trade. Additionally, he is a proponent of establishing a unified currency among the BRICS nations (Brazil, Russia, India, China, and South Africa). These countries have been intensifying economic collaboration and promoting the expansion of trade conducted in their respective national currencies.
During the second Eurasian Economic Forum, Alexey Overchuk, RRussia’sdeputy prime minister for Eurasian integration, disclosed that the Eurasian Economic Union (EAEU) has achieved substantial advancements in transitioning towards payments conducted in national currencies. He highlighted that Russia is shifting to a national currency for settlement, and the proportion of settlements made in national currencies in the mutual trade between EAEU member states reached 90% in March.
Global Shift: De-Dollarization efforts expand across regions
This development solidifies the fact that de-dollarization is now a tangible reality within the Eurasian Economic Union. Overchuk emphasized that the EAEU has effectively adopted payments in national currencies as the primary mode of conducting transactions.
The global trend of de-dollarization is rapidly gaining momentum, with an increasing number of countries actively pursuing measures to reduce dependence on the US dollar. In addition to the BRICS and the EAEU, there has been a significant development within the Association of Southeast Asian Nations (ASEAN), where 10 Southeast Asian nations have agreed to foster the use of national currencies.
Furthermore, high-ranking officials from nine Asian countries convened in Iran last week to deliberate on strategies for de-dollarization. These recent developments highlight the widespread commitment among nations to explore alternatives to the US dollar in international transactions.
In conclusion, the de-dollarization trend is rapidly progressing as countries worldwide actively seek to reduce their dependency on the US dollar. Russia is shifting to a national currency for settlement, along with the declining share of the US dollar, demonstrating a strategic move towards economic sovereignty.
This trend is not limited to Russia, as other countries like Brazil and ASEAN members are also prioritizing national currencies and promoting regional economic cooperation. The growing momentum of de-dollarization signifies a global movement towards diversification, increased autonomy, and a desire to establish a more equitable and resilient international financial system.
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