BRICS member Russia is pushing the de-dollarization initiative in Africa urging nations to trade in local currencies and not the US dollar. Russia’s President Vladimir Putin vigorously called for African countries to start using local currencies for trade, including the Russian Ruble.
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Putin explained that Russia is “ready to work” with African countries to help them shift away from the US dollar. He added that BRICS can help Africa build its financial infrastructure by connecting its global banking system to local currencies. The Russian President stressed that cross-border transactions without the US dollar are beneficial to Africa.
BRICS Urges Africa To Use Local Currencies For Trade, Sideline US Dollar
The BRICS alliance is convincing developing countries around the world to stop relying on the US dollar for trade. A handful of countries believe that BRICS has the power to usher the world into a new financial era. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar trade.
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Putin stressed that BRICS is ready to help Africa if they want to sideline the US dollar for trade. “For further expansion of the whole range of trade and economic ties it is important to more vigorously shift in financial settlements on trade transactions to national currencies, including the ruble,” he said.
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“In this respect, we are ready to work with African countries on the development of their financial infrastructure. On connecting banking institutions to the financial messaging system that has been created in Russia. It permits making trans-border payments independently of Western systems that currently exist and impose restrictions,” he summed it up.
The messaging comes in time just six months before the upcoming BRICS summit in Russia. The 16th summit is scheduled to be held in October this year in Russia’s Kazan region.