Russia and Islamic World Discuss De-Dollarization, Creation of Independent Financial System: Report
Russia and Islamic nations are discussing de-dollarization and the state of the global financial system, according to a new report.
Russia’s Deputy Prime Minister Alexey Overchuk says the talks are part of an overall look at “current global shifts”, reports the Russian state-funded news organization TASS.
Overchuk says the agenda is focused on de-dollarization, financial independence, industrial production, energy and food security.
“Of course, our relations [with Islamic countries] are influenced by global shifts that are taking place and global trends. We are talking about processes of de-dollarization and the creation of an independent financial system.
This broader agenda and how it affects countries and relationships allows us to see that relations between Russia and the Islamic states have a very large and very positive future. The government is doing a lot to ensure further development along these lines.”
Russia has expanded its financial ties to Iran after facing a wave of international sanctions due to its invasion of Ukraine.
Russia’s second-biggest bank, VTB, just opened a representative office in Iran, reports Forbes. Meanwhile, two Iranian banks are preparing to open physical locations in Russia.
According to Russia’s Deputy Prime Minister Alexander Novak, about 80% of mutual settlements between Russia and Iran are now settled using rials and rubles, and not the US dollar.
13 Countries Formally Request to Join BRICS As Economic Alliance Challenges US Dollar Supremacy
A total of 13 countries have now formally asked to join the global economic alliance known as BRICS.
In an interview with TV BRICS, African Ambassador Anil Sooklal says nations from Africa, Latin America and Asia are looking to become new members.
“So far, a number of countries (at least 13) from Africa, Latin America and Asia have applied or formally approached the BRICS leaders to become members of our association.
This is positive news for the bloc, as it demonstrates the confidence of the global south in the leadership of our association.”
Sooklal says BRICS, which is reportedly considering the launch of a global currency backed by gold, is now encouraging members to shift away from the US dollar and settle transactions in their own national currencies.
“In general, BRICS as a global association is based on three pillars – political security, economic and financial development, and social interaction among the member countries.
All three pillars are critical important for the creation of a global political architecture that is equitable and just, which is a stable safe environment for all. On the economic and financial side, we need a stable global financial architecture, a global financial arena. That is why we say that we need to trade in our own currencies.”
BRICS, which stands for Brazil, Russia, India, China and South Africa, is set to hold its yearly summit in August.
In addition to strengthening economic ties, Sooklal says leaders also plan to discuss sustainable development and green energy initiatives.
De-Dollarization Efforts Now More Genuine Than Ever Amid Looming US Economy Concerns: Circle CEO Jeremy Allaire
Circle CEO Jeremy Allaire says that the threat of de-dollarization is not as easy to dismiss as it once was.
In a new interview at the Currency in the Crossfire event hosted by Foreign Policy magazine, Allaire says that nations are taking more decisive steps than in the past to move away from the US dollar as a reserve currency and medium of trade exchange.
“There’s been this theme of de-dollarization for a long time, and people talk about it every 10 years. And people say it’s not going to really happen.
And I think we’re now at a really different place. You cannot miss the news every day and hear about different initiatives to denominate different types of trade in alternative currencies or efforts to establish new alternative payment systems. And I think this is part of the multi-polar world that’s emerging is there’s a desire to have autonomy outside of the dollar…
There’s concern about weaponization. There’s concern about what could happen if you’re not on the right side of the United States. And that’s a concern that’s driving some things. There’s concern about the indebtedness of the United States government, and that’s a concern for people who hold T-bills and the like over a very long-term period. And so you’re seeing some of these shifts. You’re seeing reserve status shift and the like.”
The CEO of the USD Coin (USDC) stablecoin issuer goes on to say that while de-dollarization is something that could take decades, it is not something to be ignored.
“It’s important not to overhype this because these are things that happen over decades. But I think it’s also really critical because it’s a moment in time where things very much feel different. The realignment that’s happening around the world is real. And that’s political and economic, and that’s real. And so the kind of efforts to create these alternative systems are much more genuine than ever in the past…
You can sort of say, ‘Well, that’s not going to be challenged for a long time.’ But that’s like the frog in boiling water, and I think you’ve got to decide when you’re going to get out. And what are you going to do about it.”
Allaire also believes that one way the country can keep the US dollar competitive is by embracing digital assets like Circle.
“From my perspective, digital dollars, having sound regulation around this industry and making digital dollars an export product to the internet and to the world is really critical from a competitiveness perspective right now.”
Global Shift Away From US Dollar Is Now ‘Inevitable’, Says Venezuelan President Nicolas Maduro
Venezuelan President Nicolas Maduro says a significant decline in the global use of the US dollar is now inevitable.
In his latest weekly update, Maduro points to US sanctions as the core reason that nations are exploring ways to reduce their reliance on the world’s reserve currency.
Maduro says African nations are setting the tone.
“They are adding to the process of the inevitable de-dollarization of the world.
The more multipolar the world is, the more multicentric the world is. As the world moves further toward equilibrium, a basket of currencies will appear…
Many alternative initiatives to the US dollar are emerging. We could say we are beginning to live a sustained accelerated process of de-dollarization of the commercial world, of world trade.”
Maduro says Zimbabwe’s new gold-backed digital currency is an important sign of what’s to come.
The coin is designed to be used for payments as well as a store of value for citizens.
Maduro also touts the economic alliance BRICS, which recently launched a New Development Bank (NDB) designed to offer loans that fuel public and private projects.
BRICS, which stands for Brazil, Russia, India, China, and South Africa, is also exploring the launch of a global currency that sidesteps the need to rely on the US dollar.
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