Vladimir Putin has confirmed that Russia will reduce the use of the dollar in BRICS, in response to the challenges posed by Trump’s policies to de-dollarization efforts.
Russian President Vladimir Putin addressed Russia’s stance within the BRICS alliance with respect to the utilization of the U.S. dollar. Putin clarified that Russia is not intending to completely abandon the dollar, but rather to restrict its use as a settlement currency, in contrast to the BRICS bloc’s ongoing de-dollarization efforts.
Putin emphasized that the global trend toward alternative currencies is merely a response to changing economic dynamics, characterizing the dollar as a “pillar of U.S. power.”
Vladimir Putin Verifies That Russia Will Not Ban the Dollar
Despite ongoing de-dollarization discussions within BRICS, Vladimir Putin reaffirmed in a recent interview that Russia will not wholly abandon the U.S. dollar. Rather, Russia’s objective is to diminish the dollar’s influence in transactions by employing it sparingly in global settlements.
Putin stated that the progressive decline in payments in dollars is a natural occurrence, driven by evolving global economic conditions, rather than an explicit rejection of the U.S. currency.
Concurrently, the BRICS nations are working to establish a unified payment system in order to decrease their dependence on the currency. This new system, which is based on the payment networks of each member country, will enable transactions in local currencies, thereby facilitating financial autonomy. The initiative is a component of the bloc’s objective to fortify its financial infrastructure.
The Russian president was adamant:
“Our proposals are not aimed against [the] dollar. This is simply us rising to the challenge of modern times, in response towards the development of the economy we are thinking about.”
BRICS Dollar Strategy is Challenged by Trump’s Policies
Nevertheless, the future of BRICS’ de-dollarization strategy could be impacted by the re-election of Donald Trump. Trump underscored the significance of maintaining the global role of the U.S. dollar during his campaign, cautioning that nations that abandon the dollar may be subject to tariffs on their products. This posture could present challenges for the BRICS nations as they attempt to diversify their economies beyond the dollar.
Consequently, the BRICS bloc may encounter obstacles in its endeavors to establish alternatives as a result of Donald Trump‘s administration’s efforts to further strengthen the dollar. BRICS leaders, including Vladimir Putin, are dedicated to investigating a variety of currency strategies, despite the potential obstacles.
In September, during one of his campaign rallies, Donald Trump stated,
“Many countries are leaving the dollar. They not going to leave the dollar with me. I’ll say, you leave the dollar, you’re not doing business with the United States because we’re going to put 100% tariff on your goods.”
Additionally, Vladimir Putin suggested that digital currencies such as Bitcoin and XRP could play a role in BRICS during discussions regarding future financial strategies.
Putin acknowledged the interest in investigating digital assets, despite the fact that the adoption of these cryptocurrencies is still in its early phases.
Nevertheless, he underscored that a complete transition to cryptos is premature, and the primary emphasis is still on national currencies. As a result, the president stated that the member countries are concentrating on the establishment of a strong banking network to facilitate intra-BRICS commerce.
