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De-dollarization among BRICS members ‘irreversible’: Putin

Tuesday, 22 August 2023 11:19 PM [ Last Update: Tuesday, 22 August 2023 11:19 PM ]

Russian President Vladimir Putin attends a meeting of the Shanghai Cooperation Organisation (SCO) Heads of State Council via videoconference at the Kremlin, in Moscow, Russia, Tuesday, July 4, 2023. (Photo by Sputnik)

Russia's President Vladimir Putin says the shift away from the US dollar in internal trade among the members of the BRICS, an intercontinental geopolitical bloc, is an "irreversible process."

"A balanced, irreversible process of de-dollarization of our economic ties is gaining steam, with efforts undertaken to develop efficient mechanisms of mutual settlements, as well as monetary and financing control," he told BRICS Business Forum, which was being hosted by South Africa, via video-link on Tuesday.

"As a result, the share of the dollar in export and import transactions within BRICS is declining as it only equaled 28.7% last year," he added.

BRICS consists of Brazil, Russia, India, China, and South Africa. The group's leaders coordinate multilateral policies and meet annually at summits.

The BRICS countries account for 42 percent of the global population and about 27 percent of both the world's land area and the world’s economy.

BRICS nations aims to end US dollar domination

BRICS leaders to focus their attention on devising active mechanisms to end their dependancy to the US dollar.

The bloc has become increasingly important in addressing international issues since it was founded in 2006, and is often seen as a counterweight to Western political and economic hegemony.

The economies of the BRICS, Putin added, outperform those of the Group of Seven which includes the UK, Germany, Italy, Canada, the United States, France, and Japan, in terms of purchasing power parity. "The forecast for 2023 is 31.5% against 30%," he stressed.

Also addressing the event, Brazilian President Lula Da Silva lent support to the emergence of a common currency for trade among the BRICS members.

He also expressed Brazil's willingness to see more countries join the bloc, which, in his opinion, would bring more relevance.