The Russian Foreign Minister, Sergey Lavrov, has stated that Russia will continue expanding trade relations with “friendly” countries and decrease the use of the US dollar in favor of national currencies. Lavrov emphasized that Russia’s intention is not to undermine the global role of the US currency, but rather it is the actions of Washington that are eroding its position.
During a speech at the Moscow State Institute for International Relations, Lavrov highlighted that Russia is moving away from settling transactions in dollars due to Western sanctions. Instead, they are increasingly using national currencies. Lavrov expressed his concerns about the reliability of reserve currencies such as the euro, yen, and dollar itself, stating that none of them can be considered completely trustworthy.
Lavrov also shared the positive growth of the trade turnover within the Russia-led Eurasian Economic Union (EEU), which includes Kazakhstan, Belarus, Armenia, and Kyrgyzstan. He mentioned that the use of national and other friendly currencies within this union has reached 76% in 2022 and is expected to grow to 90% this year.
Concluding his speech, Lavrov emphasized Russia’s commitment to developing cooperation with countries that are willing to engage on the basis of equal rights and the search for a fair balance of interests. He highlighted the consensus-based work of organizations such as the CSTO, CIS, EEU, BRICS, and SCO.
The Foreign Minister’s remarks reflect Russia’s ongoing efforts to reduce its dependence on the US dollar and promote the use of other currencies in international trade. This move aims to diversify and strengthen Russia’s economic position, especially in the face of Western sanctions. By expanding trade relations with friendly countries and increasing the use of national currencies, Russia seeks to reduce its vulnerability to potential disruptions or restrictions imposed by the US.
The decision to decrease reliance on the US dollar aligns with a broader trend observed in various parts of the world. Countries like China and Iran have also been exploring alternative settlement arrangements that bypass the dollar-dominated global financial system. This shift signifies a growing desire among nations to assert greater independence from the US and reduce their vulnerability to the potential impact of US financial sanctions.
While it is premature to predict the demise of the US dollar as the dominant global currency, the efforts by countries like Russia to reduce its usage do raise questions about the long-term stability and sustainability of the dollar’s status. These developments urge policymakers and investors to consider the potential consequences and implications of a changing global financial landscape.
In conclusion, Sergey Lavrov’s statement reaffirms Russia’s commitment to expanding trade relations and decreasing reliance on the US dollar. As Russia embraces national currencies and promotes cooperation with like-minded countries, it signals a broader trend of countries seeking diversification and greater independence from the US-dominated global financial system. While the full implications of these shifts are yet to be seen, they warrant close attention and analysis to understand their potential impact on the global economy.
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