Russia, along with other BRICS members and African countries, is in discussions about creating a new global currency that could potentially challenge the dominance of the US dollar, according to State Duma Deputy Speaker Aleksandr Babakov. In an interview with Russian media, Babakov stated that Russia is ready to take on a new role in the world order and undermine the hegemony of the US, especially after successfully weathering Western sanctions. The recent Russia-Africa summit held in St. Petersburg served as evidence of the failure of the collective West to isolate Russia, and highlighted the new trends in the global system of international relations.
Babakov emphasized that achieving real sovereignty for Russia would require a shift away from the dominance of the US dollar. He explained that Moscow and its partners would need to agree on a new monetary unit and establish rules for its functioning. When asked about the specifics of the new currency, Babakov mentioned that it would be an analogue of the dollar, not the yuan or the ruble. He argued that the BRICS, in terms of its economic potential, surpasses the G7, making the market for this new currency very vast. Hence, he asserted that there are no reasons to remain tied to the dollar.
This push for a new global currency is part of a broader trend of de-dollarization, which has gained momentum in recent years following the sanctions that effectively cut Russia off from the Western financial system. Many developing nations, including fellow BRICS member states China, India, Brazil, and South Africa, have also been shifting towards alternative currencies in their trade activities. Moscow proposed the idea of a BRICS currency last year, with Russian President Vladimir Putin announcing that member states were working on developing a new reserve currency based on a basket of the national currencies used by the five-nation bloc.
The discussion surrounding a new global currency reflects the growing ambitions and aspirations of emerging nations to reduce their dependence on the US dollar and challenge the dominance of Western economies. The BRICS nations, in particular, have been seeking to distance themselves from the US dollar in their mutual trade. By establishing a new currency, these countries aim to create a more balanced and equitable global monetary system that reflects their economic strength and potential.
While the name of the new currency is not essential, the focus is on establishing an alternative to the US dollar that can function widely in the market. Russia, with the support of its BRICS partners, aims to create a monetary unit that can rival the dollar and provide greater economic sovereignty for its member states. This move signifies a strategic shift in the global financial landscape and signals the desire of emerging economies to have a greater say in shaping the international monetary system.
In conclusion, Russia, along with its BRICS partners and African countries, is actively discussing the creation of a new global currency that could challenge the dominance of the US dollar. The recent Russia-Africa summit demonstrated the failure of the collective West to isolate Russia and highlighted the changing dynamics in international relations. By moving away from the US dollar, these nations seek to establish a more balanced and independent global financial system. The proposed new currency, an analogue of the dollar, would provide greater economic sovereignty and reflect the growing economic potential of the BRICS nations. As the trend of de-dollarization gains momentum, these discussions represent a significant shift in the global monetary landscape and the aspirations of emerging economies to assert themselves in the international order.