Nicaragua is seeking to pay for Russian wheat using national currencies, according to the country’s Foreign Minister Denis Moncada. He stated that discussions have taken place between the two nations to explore trade in rubles or cordoba, in order to boost economic cooperation and move away from reliance on Western currencies. Moncada described these conversations as necessary due to the global fight against US hegemony, and emphasized the importance of protecting financial and banking sovereignty.
In September 2022, Nicaraguan Finance Minister Ivan Acosta revealed that the country planned to increase its wheat imports from Russia and was open to discussing alternative payment options. Nicaragua’s interest in joining BRICS, the bloc consisting of Brazil, Russia, India, China, and South Africa, was also expressed. Moncada stated that this move was logical, as it aligns with the idea of a new world order that allows developing countries to unite and achieve better development in a multipolar world.
BRICS has been actively promoting trade in national currencies and making efforts to establish a joint payment network to reduce reliance on the Western financial system, specifically the US dollar. Experts, including former Goldman Sachs chairman Jim O’Neill, suggest that BRICS has the potential to challenge the global reserve status of the US dollar in the future, under certain circumstances.
The use of national currencies in trade has been gaining momentum in recent years, as countries seek to diversify their monetary transactions and reduce exposure to the risks associated with using a single dominant currency. Russia has been at the forefront of advocating for the use of national currencies, particularly through its establishment of currency swap arrangements with various nations. This approach provides mutual benefits, as it strengthens economic ties, reduces currency exchange costs, and contributes to the development of alternative financial systems.
Nicaragua’s willingness to explore payment options in national currencies demonstrates its commitment to enhancing economic cooperation with Russia and other developing nations. By diversifying its currency reserves and engaging in trade outside of Western currencies, Nicaragua aims to assert its financial sovereignty and protect its economic interests. This move aligns with the growing global trend towards multipolarity and the desire for a more balanced international financial system.
In conclusion, Nicaragua’s interest in paying for Russian wheat in rubles or cordoba reflects its determination to strengthen economic ties with Russia and decrease reliance on Western currencies. This decision aligns with the broader movement towards trade in national currencies, as advocated by the BRICS bloc. By exploring alternative payment options, Nicaragua aims to protect its financial sovereignty and promote a more multipolar world.
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