Putin says West weaponizing dollar, urges establishment of new monetary system

Russian President Vladimir Putin has slammed the West over its abuse of the US dollar and weaponizing it as a tool in international affairs to put pressure on other nations.

In a meeting in St. Petersburg on Wednesday, Putin told the former president of Brazil Dilma Rousseff that setting up an alternative to the dollar was a necessary endeavor at a time when Washington is using the US dollar as a weapon against other nations.

Rousseff is the current head of the New Development Bank (NBD) also known as the BRICS Bank, headquartered in the Chinese city of Shanghai which was established to support multilateral economic development in the BRICS nations, namely, Brazil, Russia, India, China, and South Africa.

The NBD was founded in 2014 by the BRICS group in a bid to move away from the US dollar in international trade as it aims to introduce other currencies as the medium for international trade’s financial transactions.

The end of US dollar hegemony draws near

The days of US dollar hegemony appear to be numbered as multiple countries have adopted alternative currencies to the US dollar for international transactions.

In his meeting with Rousseff, Putin emphasized establishing a new monetary system, which was of utmost importance for the world today and could be achieved through expanding the BRICS Bank.

“I have no doubt that using your rich experience in government and knowledge in this area, you will do everything to develop this institution, which I think is very important today,” Putin told Rousseff.

The Russian leader pointed out that in order to succeed in this endeavor, the current financial conditions of the world needed to change.

“In current conditions, this is not an easy job, given what is happening in world finance and the use of the dollar as a tool of political struggle,” he said, adding that the economies of Brazil, Russia, India, China, and South Africa are not aimed against anyone, but working together in mutual interest, including in finance.

Putin pointed out that BRICS member states were already increasingly settling accounts in national currencies.

Rousseff, for her part, agreed with the Russian leader that this approach should be implemented by developing countries in general, emphasizing that the importance of the issue must not be neglected.

Earlier, Rousseff said the NBD was short of liquidity, planning to provide loans in the local currencies of its member nations, effectively moving away from using the US dollar in international trade.

“It is necessary to find ways to avoid foreign exchange risk and other issues such as being dependent on a single currency, such as the US dollar,” Rousseff said during an interview on April 14 with Chinese media outlet CGTN.

The meeting between Putin and Rousseff comes ahead of this week’s Russia-Africa summit in St. Petersburg.

BRICS stands against weaponization

In related news, South African Foreign Minister Naledi Pandor told RT in an exclusive interview published on Wednesday that the group of emerging economies was working to address key development issues such as peace and security in the member states.

Pandor said more countries are attracted by the bloc’s progressive ideals and are now seeking to become members of BRICS.

The South African minister stated that the group was expanding, noting that three new countries had joined the bloc, bringing the total membership to eight.

BRICS member states welcome Iran's potential accession

Iran’s Foreign minister Hossein Amir Abdollahian said the members of the BRICS group of emerging countries have welcomed Iran’s accession to the group.

She described the expansion of the group as a “fantastic” development.

“We’re not standing against anyone; we’re not standing for anybody. We work for the good of the world. We’re not seeking to weaponize the oceans, we’re not seeking to weaponize the forest, and we’re not seeking to weaponize climate change,” she insisted.

To avoid any sort of weaponizing, the BRICS bloc designed a plan to adopt a new currency for their international business transactions to replace the US dollar and end the decades-long global dominance of the greenback.

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