De-Dollarization and Creation of Independant Financial Systems are Accelerating Globally
De-Dollarization and Creation of Independent Financial Systems are Accelerating Globally
Monday, 22 May 2023, 3:34 AM
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.
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.
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