Dollar Losing its Status as Global Currency: Maria Zakharova
In a recent interview with Turkish news outlet Aydinlik, Russian Foreign Ministry spokeswoman Maria Zakharova expressed how more and more countries are shifting away from using the US dollar as a means of payment in international trade. Zakharova described the dollar as a “very problematic” currency and emphasized that de-dollarization is not just a goal pursued by Russia, but has become a reality globally.
Zakharova highlighted that the US initially proposed the dollar as an international currency with the intention of making global transactions and relationships easier and more comfortable. However, she noted that the current use of the dollar by the US is to impose pressure on its political opponents. Zakharova specifically referred to the Western sanctions placed on Russia over the Ukraine conflict, which effectively banned Russia from using the dollar in international transactions. She stated that the currency is now being used as a tool of hegemony and a new form of colonialism, punishing and segregating targeted countries.
According to Zakharova, de-dollarization is not an end goal in itself, but rather a response to the problematic nature of the dollar. She pointed out that the global economic problems, including the 2008 financial crisis, often originate from the US, while national currencies tend to be more stable. As a result, an increasing number of countries are opting for national currencies in cross-border trade.
Zakharova made it clear that de-dollarization is a reality that cannot be ignored. She emphasized that it is not just a political viewpoint, but an objective economic fact. The process of de-dollarization, which Russia and other countries have been actively pursuing, is a response to the limitations and risks associated with the US dollar.
The Russian official also highlighted the motivation behind countries’ desire to reduce reliance on the dollar. She stated that countries want to establish their own financial guarantee systems to avoid being victims of future American financial crises. Each country can determine its own approach to achieve this goal, but the trend is clear – more and more countries are taking steps to avoid becoming vulnerable to the American financial system.
Russia has been reducing its use of the dollar in foreign trade since 2014, but the sanctions imposed last year have intensified these efforts. The share of national and “friendly” currencies in Russia’s trade with the Eurasian Economic Union grew to nearly 80% in 2022, and it is expected to reach 90% by the end of this year. Furthermore, reports have emerged that the BRICS group of emerging economies, which includes Russia, Brazil, India, China, and South Africa, is considering switching all cross-border trade to national currencies.
The shift away from the dollar as the dominant global currency reflects a growing distrust and dissatisfaction with its role in international transactions. As more countries embrace de-dollarization, the established financial order is being challenged, and alternative systems are being explored to ensure stability and autonomy in global trade.
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