Spokeswoman for Russia's Foreign Ministry, Maria Zakharova, says, “The dollar is no longer a world currency,” during the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg on June 15.
"As a result, countries are attempting to switch to national money in order to avoid reporting to the US Treasury," stated Maria.
She also stated that regional organisations, such as the BRICS, want to establish their own currency. BRICS is an organization similar to the G7, but for emerging economies rather than industrialized economies. Brazil, Russia, India, China, and South Africa currently account for 26% of the world's territory, 41% of the world's population, and 32% of global GDP (slightly higher than the G7's 31% of GDP). BRICS, on the other hand, may be on the rise. It has been contemplating the possibility of adding additional members, including Middle Eastern nations such as Saudi Arabia, the United Arab Emirates, Egypt, and Iran, as well as South and Central American nations such as Mexico and Argentina. This would boost its significance in relation to the US and the G7.
Recent developments also indicate that the BRICS countries have made headway in reducing their reliance on the US currency for foreign exchange. In January 2023, China and Brazil agreed to abandon the US dollar in commerce, instead opting to adopt the Chinese Yuan and Brazilian Real. India has also offered Rupee trading options to countries suffering from a paucity of dollars. Furthermore, Russia has advocated for the use of a non-US currency in transfers between Russia and Asia, Africa, and Latin America.
Earlier we mentioned that, Kenyan President William Samoei Ruto has urged African countries to cease the use of the US currency in intracontinental trade. President Ruto recently addressed the Djibouti parliament, emphasising the importance of abandoning reliance on the US currency for trade transactions between Djibouti and Kenya. Moving intracontinental trade away from the US dollar might potentially speed up transactions and stimulate economic growth among African countries.
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