Putin Warns Against Weaponizing The US Dollar

At the BRICS Summit in Kazan, Russian President Vladimir Putin shared important thoughts about the US dollar. 

He believes using the dollar as a political tool is a big mistake. His comments came after Dilma Rousseff, president of the New Development Bank (NDB), talked about how this practice affects global politics.

Rousseff pointed out that using the US dollar in this way changes people's lives negatively. She explained that many countries, especially Russia, are facing tough times because of harsh sanctions. 

These sanctions have led many Western companies to leave Russia. This includes businesses in food, clothing, and car manufacturing. Because of these actions, people in Russia are finding it hard to travel and make international bank transfers.

Putin agreed with Rousseff. He said, “Yes, indeed, we can see that this is true.” He added that he thinks using the dollar as a weapon is a huge mistake. According to Putin, the dollar is still the most important tool in world finance. When it is used for political reasons, it loses people's trust and becomes less effective.

Putin clarified that Russia does not want to stop using the dollar altogether. Instead, he said they are being “prevented from working with it.” 

Because of this, Russia is looking for other options. This change is already happening, especially since many Russian banks were cut off from the Western financial system last year due to Russia’s military actions in Ukraine.

Since then, Russia has started to trade more with other countries using their own currencies. This shift is supported by other BRICS nations, which include Brazil, Russia, India, China, and South Africa. 

These countries are moving away from the US dollar and euro for trade. In August, Russian Prime Minister Mikhail Mishustin shared that over 95% of trade between Russia and China is now done using the ruble or yuan, rather than the US dollar.

Putin mentioned that using local currencies instead of the dollar or euro helps keep economic growth free from political influence. He believes that in today’s world, this is very important. By relying on their own currencies, Russia and its trading partners can focus more on business and less on politics.

The situation reflects a larger trend in the world economy. As countries face economic pressure and changes in global politics, many are reconsidering their reliance on the US dollar. This includes finding new ways to conduct trade that do not involve Western currencies.

As countries continue to develop their own economic relationships, the dynamics of international trade are shifting. 

The traditional reliance on the US dollar may no longer be as strong as before. This change is particularly evident among countries in the BRICS group.

In conclusion, President Putin's statements highlight the growing concerns about using the US dollar as a political weapon. He urges nations to consider the broader impacts of their economic decisions. As countries explore alternatives, the future of international finance may look very different.

The discussion at the BRICS Summit is a clear signal that many nations are ready to rethink their financial strategies. They are looking to build a system that is fairer and more stable for everyone involved. In doing so, they aim to foster a more cooperative global environment where trade can flourish without political interference.