The dominance of the dollar as the reference currency in international trade is now more than ever called into question. As geopolitical tensions and American economic sanctions multiply, several emerging powers are organizing to reduce their dependence on the greenback. It is in this context that Sergei LAVROV, Minister of Foreign Affairs of Russia, and Donald TRUMP, former President of the United States, come together in their criticism of current policies. According to them, the systematic use of the dollar as a tool of sanctions weakens not only the American economy, but also the position of the dollar on the international scene.
Sanctions that weaken the US dollar
At a conference, Russian Foreign Minister Sergei LAVROV supported Donald TRUMP's statements regarding the impact of US sanctions on the dollar. Indeed, the former president and Republican candidate in the US election directly stated that the sanctions imposed by the Biden administration are destructive for the American economy. “I agree with him,” he said. declared LAVROV: According to the latter, the use of the dollar as an instrument of sanctions has generated distrust in the American currency, with risks for nations that continue to depend on the greenback in their international transactions.
The sanctions imposed by the United States, particularly against countries such as Russia and China, have indeed helped fuel a movement of de-dollarization in several major economies. Thus, LAVROV stressed that the dominance of the dollar in world trade is beginning to crumble, particularly among the nations of the BRICS bloc. Trade agreements settled in national currencies, such as those concluded between China and Russia, are the tangible manifestation of this desire to detach itself from dependence on the dollar.
BRICS free themselves from the dollar
In the same vein, at the Cloud Cities forum in Moscow, Samip SHASTRI, Vice President of the BRICS Chamber of Commerce and Industry, made a major announcement.I believe that the volume of transactions in national currencies has already exceeded that of transactions in dollars.“, he said. For him, this transition to local currencies allows to avoid additional costs related to currency conversions, promotes the economic autonomy of the BRICS and at the same time reduces their dependence on the financial system dominated by the United States.
The global economic landscape is changing. And the challenge to the dollar's hegemony is one of the most visible signs of this. The unexpected alignment of Donald TRUMP and Sergei LAVROV's positions on the harmful effects of American sanctions is evidence of a growing divide over the place of the greenback in international trade. The BRICS, thanks to settlements in national currencies, are getting closer and closer to their goal of rebalancing the global financial system, which until now has been largely dominated by the United States.
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