Sunday, September 24, 2023

De-Dollarization irreversible process: Putin

The US dollar is losing its global role in an “objective and irreversible” process, Russian President Vladimir Putin told participants at the BRICS Summit in South Africa on Tuesday. He spoke via videolink, after choosing not to attend the event in person.

De-dollarization is “gaining momentum” he said, adding that members of the group of major emerging economies are seeking to reduce their reliance on the greenback in mutual transactions.

The Russian leader stated the five nations – Russia, China, India, Brazil and South Africa – are becoming the new world economic leaders, and that their cumulative share of global GDP has reached 26%.

He added that if measured by purchasing power parity, BRICS has already surpassed the Group of Seven leading industrialised nations – accounting for 31% of the global economy, compared to 30% for the G7.

Over the past 10 years, mutual investment between the BRICS member states has increased by six times, the Russian president noted. Their total investments in the world economy have doubled, while cumulative exports account for 20% of the global total, he continued.

Moscow is focusing on re-orienting its transport and logistics routes towards “reliable foreign partners,” including BRICS members, to ensure an uninterrupted supply of energy and food to the international market.

Russia’s primary goals include developing the Northern Sea Route and the ‘North-South’ transport corridor, Putin stated. The first, passing through the Arctic Ocean, along Russia’s northern coastline, will ensure faster goods deliveries between Europe and the Far East. The second will connect Russia’s northern and Baltic ports to the Persian Gulf and the Indian Ocean, facilitating cargo movement between Eurasian and African nations, the Russian leader added.

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