Vladimir Putin, President of Russia.
Moscow: Russian President Vladimir Putin has made a big statement before the BRICS summit regarding the possibilities of trade in the common currency by its member countries. He said that the time has not yet come for a common currency of BRICS. However, he said that this group of 10 countries is exploring the possibility of using digital currencies in mutual trade and investment and for this his country is working in this direction with India and other countries. He advocated a cautious approach in creating the new reserve currency due to differences in the structure and nature of the economies of the BRICS member countries.
Putin said that these countries should focus on the use of national currencies, new financial instruments and the creation of a system in line with SWIFT. “At the moment it (BRICS currency) is a long-term possibility,” Putin told senior editors of BRICS member countries while speaking to the media on Friday at his official residence in Novo-Ogaryovo, about 50 kilometers from Moscow. This is not being considered. BRICS will remain cautious and work progressively, moving forward slowly.
The time has not come yet. The Russian President made this comment in response to a question about BRICS’ plan to create a reserve currency. The BRICS grouping is believed to have been conceived in response to the geopolitical and geo-economic alliances of the West.
16th BRICS conference is going to be held in Russia
Let us tell you that this statement of Putin has come before the 16th annual BRICS summit which is going to be held in Kazan city of Tatarstan in Russia next week. Moscow is hosting it. Prime Minister Narendra Modi will participate in this summit to be held from 22 to 23 October. This will be the first summit of the grouping after the inclusion of Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE). Brazil, Russia, India, China and South Africa are the original member countries of BRICS. Putin, in response to a question, said that BRICS is now exploring the possibility of increasing the use of national currencies and the creation of instruments that could make such operations secure.
BRICS is considering these possibilities
Putin said that BRICS countries in particular are considering the possibility of using electronic equipment. “We are considering the possibility of expanding the use of national currencies and settlement systems, and want to deploy equipment that will make it sufficiently secure,” he said. Putin said the group would be given a A ‘toolkit’ will have to be prepared which will be under the supervision of the respective BRICS institutions. “This could be another very good step in the development of the Global South with our direct active participation,” he said.
We will talk about this during the (Kazan) summit. We are already consulting with Chinese, Indian friends and Brazilians. Apart from this, we have also held a round of discussions with South Africa.
Emphasis on reducing dependence on US dollar
The Russian President also stressed the need to establish relations between central banks and exchange financial information. Putin also outlined the group’s broader strategy to reduce dependence on the US dollar and assert greater economic independence. He said, “I think the US needs to consider that they have damaged relations with Russia by continuously imposing sanctions and this ultimately has a negative impact on them.” That’s why the whole world is wondering whether it is appropriate to use the dollar.” Putin claimed, ”Now the amount of dollars both in disposal and in reserves is decreasing. Even America’s traditional allies are depleting their dollar reserves.
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