The Russian president, Vladimir Putin, has called for a change to the current dollar-based global financial system, stating that it does not serve the interests of all countries. Putin made these remarks during the plenary session of the Valdai Discussion Club.
According to Putin, the dominance of the American currency needs to come to an end, and he believes that this shift is already occurring. He suggested that the United States authorities are unknowingly harming themselves by holding on to this outdated system. Putin pointed out that the Bretton Woods system, which was established based on the dollar, is gradually collapsing. He emphasized that the value of a currency is derived from the strength of the country’s economy that issues it.
In addition, Putin highlighted that the share of the US economy in the global Gross Domestic Product (GDP) is declining. Statistical data supports this claim, indicating a shift in the global economic landscape.
Putin criticized the US government’s practice of printing money to cover their budget deficits. He stated that this policy will continue as long as it is necessary. He predicted that the US would continue to print more money, noting that they printed over $9 trillion during the Covid and post-Covid period. This excessive printing of money not only devalues the currency but also contributes to food inflation on a global scale.
The Russian president’s remarks reflect a growing sentiment among some nations that the current system needs to be reevaluated and reformed. The global financial landscape has changed significantly since the establishment of the Bretton Woods system in 1944, and many argue that it no longer serves the interests of all countries equally.
The United States has long enjoyed the benefits of being the world’s economic powerhouse, with the dollar serving as the reserve currency for international transactions. However, the shifting global economic dynamics and the rise of emerging economies suggest a need for a more balanced and inclusive financial system.
As the US economy’s share in global GDP declines, countries like Russia are advocating for a multipolar financial system, where no single currency dominates. This would allow for a more equitable distribution of power and influence in the global financial arena.
While some experts argue that a complete overhaul of the financial system would be complicated and challenging, there is a growing recognition that reforms are needed. The International Monetary Fund (IMF) and other international organizations have been discussing potential changes to the current system, such as the inclusion of new reserve currencies and the establishment of regional financial arrangements.
In conclusion, Vladimir Putin has called for a change to the existing dollar-based global financial system, citing its imbalance and lack of consideration for the interests of all countries. As the US economy’s influence declines and emerging economies gain prominence, there is a growing recognition that the current system needs to be reevaluated and reformed. While the prospect of significant changes may be daunting, discussions among international organizations indicate a willingness to explore alternatives that promote fairness and inclusivity in the global financial landscape.