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Putin accused western powers of “using the dollar as a weapon”, arguing in a speech at a Brics summit in Kazan that sanctions against Russia since its full-scale invasion of In a new statement, Putin has urged the Middle East oil producers to not actively engage with US dollars. This will ultimately lead to the weakening of the USD Putin said BRICS was aiming to use local currencies, not to create a SWIFT alternative. BRICS countries are expected to drive global economic growth but face challenges Russia is pushing ahead in its drive to de-dollarize its economy, Putin said. The Russian president said the use of toxic currencies had been slashed in half. The nation Others have remarked that the crash of the USD will ultimately end the dollar’s supremacy around the world. Also Read: BRICS: Russia’s Digital Ruble Key to Ending By reducing their dependence on the U.S. dollar, they aim to strengthen their local currencies in the foreign exchange market, shield themselves from the adverse effects of The global de-dollarization campaign is gaining momentum, as countries around the world seek alternatives to the hegemony of the US dollar. China, Russia, Brazil President Vladimir Putin is urging Middle Eastern nations to stop using the US dollar for oil trades as a defense against US sanctions imposed as a result of Russia’s For decades, the US dollar has been the best currency to have in the Middle East if you don't have enough dirhams, dinars, riyals or pounds on hand. But that may Mr Putin wants the summit to advance plans for BRICS Bridge, a payments system that would use digital money issued by central banks and backed by fiat currencies.

Why Putin Is Urging the Middle East to Ditch the US Dollar: Understanding De-Dollarization

President Vladimir Putin is aggressively pushing for a shift away from the US dollar in international trade, particularly urging Middle Eastern nations to abandon the dollar for oil transactions. This move is framed as a defense against US sanctions and a step towards a more multipolar global economy.

Putin's Accusations and the De-Dollarization Drive

Putin accused western powers of “using the dollar as a weapon”, arguing in a speech at a Brics summit in Kazan that sanctions against Russia since its full-scale invasion of Ukraine have demonstrated the risks of dollar dependence. In a new statement, Putin has urged the Middle East oil producers to not actively engage with US dollars. This will ultimately lead to the weakening of the USD. Russia's push for de-dollarization isn't new. Russia is pushing ahead in its drive to de-dollarize its economy, Putin said. The Russian president said the use of toxic currencies had been slashed in half. The nation aims to reduce its reliance on the dollar for international settlements, seeking greater economic independence.

The BRICS Alternative: Not a SWIFT Replacement, But Local Currencies

Putin said BRICS was aiming to use local currencies, not to create a SWIFT alternative. This emphasizes a strategy of promoting national currencies in trade between BRICS nations and other countries, rather than building a completely new global financial system. While BRICS countries are expected to drive global economic growth but face challenges, the focus is on leveraging existing currencies and establishing alternative payment mechanisms.

The Global Push for De-Dollarization: A Growing Trend

The global de-dollarization campaign is gaining momentum, as countries around the world seek alternatives to the hegemony of the US dollar. China, Russia, Brazil, and others are actively exploring ways to reduce their reliance on the USD. By reducing their dependence on the U.S. dollar, they aim to strengthen their local currencies in the foreign exchange market, shield themselves from the adverse effects of US economic policy and sanctions.

The Middle East and the Future of the Dollar

President Vladimir Putin is urging Middle Eastern nations to stop using the US dollar for oil trades as a defense against US sanctions imposed as a result of Russia’s actions. For decades, the US dollar has been the best currency to have in the Middle East if you don't have enough dirhams, dinars, riyals or pounds on hand. But that may be changing. The question remains whether Middle Eastern countries will heed Putin's call and embrace alternative currencies for oil transactions.

The BRICS Bridge and Digital Currencies

Mr Putin wants the summit to advance plans for BRICS Bridge, a payments system that would use digital money issued by central banks and backed by fiat currencies. This initiative aims to create a more efficient and independent payment infrastructure for BRICS nations, further reducing their dependence on the US dollar-dominated SWIFT system. Also Read: BRICS: Russia’s Digital Ruble Key to Ending reliance on the US dollar.

Will the Dollar's Supremacy End?

Others have remarked that the crash of the USD will ultimately end the dollar’s supremacy around the world. While the dollar's long-term dominance is still debated, the increasing efforts to de-dollarize indicate a shift in the global economic landscape. The success of these efforts will depend on the economic strength and stability of alternative currencies and payment systems.