Russian President Vladimir Putin denied that Russia is seeking to abandon the use of the US dollar in its international transactions. This statement came this week during his speech at the Valdai International Discussion Club, where he took the opportunity to congratulate Donald Trump on his victory in the recent United States presidential election.
“We are not looking to abandon the dollar. “This is done by the political and financial authorities of the United States or Europe when they refuse to pay in euros,” stated Putin. He added that, although Russia has not rejected the use of the greenback“they have prohibited us from using the dollar as a means of payment.” According to Putin, “US power rests on the dollar, but the Americans cut it with their own hands.”
Putin’s words come in a global context where the BRICS group, of which Russia is a prominent member, has publicly expressed his desire to reduce dependence on the dollar. However, recently, the alliance of countries led by Brazil, Russia, India, China and South Africa, has its de-dollarization plans on a tightrope, taking into account that a robust payment system continues to be the bloc’s pending task.
On the other hand, during his election campaign, Donald Trump threatened to impose 100% tariffs on products from any country. that he refused to use the dollar in his commercial transactions.
This threat could have influenced Putin’s position on the issue, although the Russian president insisted that his country has not damaged relations with the United States and is open to restoring them. “The ball is in the side of the Americans,” Putin stressed, ensuring that Russia is willing to work with any American president.
Dedollarization has been a recurring theme in Russia’s economic policies, especially in recent years. Elvira Nabiullina, director of the Russian Central Bank, had proposed a new payment system for the BRICS countries, challenging the hegemony of the dollar, as this media reported. However, the discussion, driven by the need to develop alternatives to dollarized economies, faces challenges and delays.
In any case, Putin’s statements not only reflect Russian foreign policy in the face of Trump’s recent electoral victory in the United States, but also its global economic strategy in a world where the balance of financial power is constantly changing.
Russia’s position in the BRICS bloc, and its recent bilateral agreements, especially with China, indicate a concerted effort to create alternatives to the dollar-dominated financial system, although Putin insists that it is not Russia that started this movement, but it is a reaction to the policies of the West.
This article was created using artificial intelligence and edited by a human Editor.
