Putin calls for BRICS countries to abandon the dollar ‘as soon as possible’

During a significant meeting with the former president of Brazil and current president of New Development Bank (NBD – BRICS Bank)Dilma Rousseff, President of Russia Vladimir Putin highlighted the importance of increasing the use of national currencies in international trade.

This strategy is seen as a means of reducing vulnerability to “external political risks”. The meeting was also attended by Elvira Nabiulinapresident of Russian Central Bankand of Sergei LavrovRussian Foreign Minister.

The proposal comes against a backdrop of increasing financial sanctions imposed on the country, especially since the start of the conflict in Ukraine in 2022. Putin has been a vocal critic of global dependence on the dollar, referring to it as a “toxic” currency.

He suggests that an international payments system alternative to Swift, from which most Russian banks have been excluded, could be a solution. The Swift system is widely used for international financial transactions, and Russia’s exclusion has significantly impacted its economy.

Dilma Rousseff also reinforced the importance of this change for countries in the Global South, which currently face significant difficulties in accessing financing under favorable conditions. She highlighted the pressing need for financial resources in these regions and the complexities involved in obtaining these resources.

The New Development Bank, led by Rousseff, was created as an alternative to the International Monetary Fund (IMF) and to World Bank. This move is part of a broader effort by developing countries to gain greater financial autonomy and reduce the influence of institutions dominated by Western powers.

The initiative to promote trade using national currencies is a direct response to current geopolitical challenges and aims to provide financial stability and less dependence on external economic structures. The meeting marks a moment of strategic collaboration between BRICS countries, which seek to strengthen their economies through partnerships and new financial structures.