KAZAN, Russia
Russian President Vladimir Putin has sharply criticized the use of the US dollar as a political weapon, describing it as a “big mistake” that could undermine global confidence in the currency.
Speaking at the BRICS Summit
in Moscow, Putin warned that such practices not only damage international trust
in the dollar but could lead to long-term instability in global financial
markets.
The Russian leader’s comments
come amid increasing concerns about the US dollar’s dominance in international
trade and finance, which has been leveraged by the US government to impose
economic sanctions on countries like Russia and Iran.
In recent years, Washington
has used its control over the global financial system to block access to
dollar-based transactions, a move Putin argues is counterproductive.
“The weaponization of the
dollar in political disputes is a mistake of significant proportions,” Putin
said. “By using the dollar as a tool for imposing sanctions and restrictions,
the United States is undermining its own currency and eroding trust in its role
as the global reserve currency.”
Despite these criticisms,
Putin made it clear that Russia has no intention of entirely rejecting the US
dollar. He emphasized that the currency remains an essential part of
international trade and finance.
However, he noted that Russia
and other countries under similar pressure must consider alternatives if they
face continued restrictions. “We are not rejecting the dollar, but we need to
think about other options if these restrictions continue,” Putin added.
In recent years, Russia has
made efforts to reduce its reliance on the dollar by increasing trade in other
currencies, including the Chinese yuan and the euro.
Moscow has also boosted its
gold reserves and explored the possibility of using digital currencies and
blockchain technology in international transactions. The move is part of a
broader strategy aimed at reducing vulnerability to US-led sanctions and creating
a more multipolar global economy.
Putin also stressed the
importance of transitioning to what he called a “fairer economic system” that
does not rely on “someone else’s rules and platforms.”
According to the Russian
president, the existing financial order, dominated by Western institutions such
as the International Monetary Fund (IMF) and the World Bank, has perpetuated
inequalities and contributed to instability, particularly in developing countries.
“The faster we can move away from platforms and rules imposed by others, the sooner we can stabilize the global economy,” Putin said.
He further warned that
continuing to depend on the US-led financial system could extend the current
period of global economic turbulence, which has been exacerbated by conflicts
such as the ongoing war in the Middle East.
Putin’s remarks also come amid
rising tensions in the Middle East, where a renewed escalation of violence has
threatened oil supplies and global markets. He argued that over-reliance on the
US dollar and Western financial systems has made countries more vulnerable to
external shocks.
“We are seeing the
consequences of this flawed system in the turbulence of the global economy
today,” he stated, referencing the economic fallout from the conflicts.
Moscow has increasingly
aligned itself with other countries seeking to diminish the US dollar’s
influence in global trade. The BRICS group of emerging economies—comprising
Brazil, Russia, India, China, and South Africa—has taken steps toward creating
a shared currency for international trade, potentially reducing their
dependence on the US dollar.
Additionally, Russia and China
have signed multiple agreements to settle transactions in their local
currencies, bypassing the need for dollars.
While Putin’s push for
alternatives to the US dollar is not new, his latest comments underscore a
broader geopolitical shift as countries seek to diversify their economic
partnerships and reduce reliance on the West.
The Russian leader has
consistently positioned himself as a proponent of a multipolar world order, in
which no single country or currency dominates international trade and finance.
However, economists warn that
replacing the dollar as the world’s primary reserve currency will not be an
easy task. The dollar’s dominance is deeply entrenched, with a large portion of
global trade, including oil transactions, still conducted in US currency.
Moreover, many countries
continue to hold significant dollar reserves as a hedge against economic
volatility.
Despite these challenges,
Putin’s remarks highlight growing frustration with the current financial system
and suggest that more countries may explore alternatives as global tensions
escalate.
The US dollar, while still
dominant, may face increasing competition from other currencies and financial
systems in the years to come.
As geopolitical tensions mount
and the global economic landscape shifts, Putin’s call for a move away from
“someone else’s rules” could signal the beginning of a more diverse and less
dollar-centric financial system.
Whether this transition
happens quickly, as Putin hopes, or faces resistance remains to be seen, but
the debate around the future of the US dollar is likely to intensify in the
coming years.
No comments:
Post a Comment