In a significant development, Russian Foreign Minister Sergey Lavrov has revealed that de-dollarization is already underway, driven by the US government’s rhetoric and policies. Lavrov highlights the active efforts of the BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, to forge a path forward without the US dollar. This article explores de-dollarisation’s growing momentum and its potential ramifications on the global financial landscape.
Lavrov’s statements underscore the commitment of the BRICS alliance to reduce dependency on the US dollar and safeguard their financial transactions. The upcoming BRICS summit in August will delve into protecting the alliance’s New Development Bank, ensuring it is shielded from potential US-hostile actions.
Russia, in particular, is responding to a concerted campaign by Western nations to isolate it from the global financial system. Lavrov contends that the US has deliberately fomented instability in various countries worldwide, employing the dominance of the US dollar as a central tactic. Nevertheless, he believes this strategy is approaching its limits and will prove unsustainable.
Lavrov further illustrates this point by highlighting the efforts of Western nations to hinder Russia’s economic growth. Recently, an American, a Briton, and a representative of the European Union embarked on a tour of Central Asian countries, actively advocating for trade restrictions on Russia. Lavrov criticizes these actions, emphasizing the short-sightedness of Western powers, which risk undermining the stability of the international financial order.
The long-term consequences of de-dollarization could reverberate across the global economy. As Lavrov suggests, the roles of international institutions like the International Monetary Fund and the World Bank and the dominance of the US dollar itself may be compromised. This shift can potentially reshape the balance of power in international finance and impact nations’ monetary policies.
The remarks by Russian Foreign Minister Sergey Lavrov signal a growing determination within the BRICS alliance to reduce reliance on the US dollar. De-dollarization efforts, spearheaded by Russia, are gaining momentum, raising crucial questions about the future of the global financial system.