Russia Leads the Way: De-Dollarization Trend Gains Momentum with National Currencies
Foreign Minister Sergey Lavrov of Russia confirmed on Monday that Russia is actively transitioning to settlements in national currencies with its partner countries. Lavrov emphasized that this shift away from the U.S. dollar is not limited to Africa but also includes Latin America, Asia, Iran, India, and China. The utilization of national currencies in trade settlements is expected to become more practical as trade turnover increases.
Lavrov highlighted Brazilian President Luiz Inácio Lula da Silva’s proposal for an independent payment system that is not reliant on the U.S. dollar or the euro. This system would be developed within the framework of the BRICS New Development Bank. The BRICS nations, consisting of Brazil, Russia, India, China, and South Africa, have been actively promoting economic cooperation and trade in national currencies.
Russia’s progress in de-dollarization was further emphasized by Alexey Overchuk, the deputy prime minister for Eurasian integration, who revealed that the Eurasian Economic Union (EAEU) has already achieved significant success in conducting payments in national currencies. In March, 90% of settlements in mutual trade between EAEU member states were made in national currencies. This demonstrates the reality of de-dollarization within the EAEU.
The de-dollarization trend is not limited to Russia and the EAEU. ASEAN member countries in Southeast Asia have also agreed to promote the use of national currencies, while officials from nine Asian countries met in Iran to discuss de-dollarization measures. The movement away from the U.S. dollar is gaining momentum globally.
Clever Robot News Desk 1st June 2023
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