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Dollar-Centric System Faces ‘Gradual Collapse,’ Putin Predicts

The Russian President says dollar-based global financial system does not meet the interests of all countries

The dollar-based global financial system is not balanced as it does not meet the interests of all countries, Russian President Vladimir Putin said at the plenary session of the Valdai Discussion Club.

According to Putin, the dominance of the American currency has to end, which is already happening, while the US authorities are “shooting themselves in the foot”, RT reported.

“The Bretton Woods system — it was once created on the basis of the dollar, but all this is gradually collapsing. Currency is a derivative of the power of the country’s economy, which issues this currency,” the Russian leader pointed out.

In addition, the share of the US economy in global GDP is declining, as evidenced by statistical data, Putin emphasized.

According to the President, Washington is used to printing money in order to cover its budget deficit, and will continue this policy as long as needed, RT reported.

“They will print more. They printed, well, more than $9 trillion during the Covid and post-Covid period. Therefore, it costs them nothing to print something else and scatter it all over the world, thus increasing food inflation. They will do it for sure,” Putin predicted.

ALSO READ: Putin: Ukraine Won’t Last A Week Without Western Aid

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Overcoming Dollar Dependency Vital for BRICS Nations

The common currency would be used to facilitate trade between the emerging nations, he said on Tuesday…reports Asian Lite News

Brazilian President Luiz Inacio Lula da Silva has called for creating a common trading currency for BRICS countries to counter US dollar hegemony.

Advocating the creation of a common currency for cross-border trade between BRICS nations without affecting national currencies, Lula da Silva said at the BRICS Business Forum Leaders’ Dialogue that an alternative to the US dollar needs to be found in the international market, Xinhua news agency reported.

The common currency would be used to facilitate trade between the emerging nations, he said on Tuesday.

“We want BRICS to be a multilateral institution, not an exclusive club,” Lula da Silva said. “We just want to organise ourselves.”

In April, he proposed possibly creating a common regional currency or similar mechanism to reduce reliance on the US dollar in trade.

Also on Tuesday, the Brazilian president announced that his government is considering the possibility of using the Chinese yuan in trade with Argentina.

“We cannot depend on a single country that has the dollar, that puts more money into circulation in dollars, and we are forced to live off the fluctuation of that currency. It’s not right,” he said. 

ALSO READ-Xi Jinping Urges BRICS Unity Against Cold War Mentality