Russian President Vladimir Putin says the US dollar is the main weapon used by the United States to preserve its power across the world.
However, he stressed that when “the political leadership decided to use the dollar as a tool of political struggle, a blow was dealt to this American power.” He called it a “grave mistake,” emphasizing that America is killing the USD with its own hands.
Putin Says the US Is Killing the Dollar With Its Own Hands
Russian President Vladimir Putin discussed various topics in an interview with Tucker Carlson on Thursday, including the decline of the US dollar’s dominance as the global reserve currency.
“You know, to use the dollar as a tool of foreign policy struggle is one of the biggest strategic mistakes made by the U.S. political leadership,” the Russian leader said, according to the translation provided by the Kremlin.
“The dollar is the cornerstone of the United States’ power. I think everyone understands very well that no matter how many dollars are printed, they are quickly dispersed all over the world.”
Emphasizing that the Federal Reserve “won’t stop printing” dollars and underscoring the $34 trillion U.S. national debt, Putin opined:
“It is the main weapon used by the United States to preserve its power across the world. As soon as the political leadership decided to use the U.S. dollar as a tool of political struggle, a blow was dealt to this American power. I would not like to use any strong language, but it is a stupid thing to do, and a grave mistake.”
“Look at what is going on in the world. Even the United States’ allies are now downsizing their dollar reserves. Seeing this, everyone starts looking for ways to protect themselves. But the fact that the United States applies restrictive measures to certain countries, such as placing restrictions on transactions, freezing assets, etc., causes grave concern and sends a signal to the whole world,” Putin described.
The Russian president detailed that until 2022, about 80% of Russia’s foreign trade transactions were made in U.S. dollars and euros.
“U.S. dollars accounted for approximately 50% of our transactions with third countries, while currently it is down to 13%,” he shared.
“It was not us who banned the use of the U.S. dollar, we had no such intention. It was the decision of the United States to restrict our transactions in U.S. dollars.
I think it is complete foolishness from the point of view of the interests of the United States itself and its taxpayers, as it damages the U.S. economy, and undermines the power of the United States across the world.”
Putin further noted that Russia’s transactions in the Chinese yuan accounted for about 3% previously.
“Today, 34% of our transactions are made in Russian rubles, and about as much, a little over 34%, in Chinese yuan,” he said.
Putin also highlighted the fast expansion of the BRICS’ influence, stating:
“As for BRICS, where Russia took over the presidency this year, the BRICS countries are, by and large, developing very rapidly.”
The economic bloc recently held a meeting where member countries pushed for the use of local currencies, instead of the U.S. dollar. Besides Brazil, Russia, India, China, and South Africa, the BRICS bloc now includes Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia
Commenting on the U.S. weaponizing its currency, Putin said:
“Why did the United States do this? My only guess is self-conceit. They probably thought it would lead to a full collapse, but nothing collapsed. Moreover, other countries, including oil producers, are thinking of and already accepting payments for oil in yuan. Do you even realize what is going on or not? Does anyone in the United States realize this? What are you doing?”
The Russian leader concluded:
“You are cutting yourself off… all experts say this. Ask any intelligent and thinking person in the United States what the dollar means for the U.S.? You are killing it with your own hands.”