BRICS overtakes G7, campaign to reduce dollar dependence intensified; Putin’s big statement on global financial system

New Delhi . Amidst the changing balance of power in the global economy, Russian President Vladimir Putin has made important comments regarding the international role of the US dollar and the financial influence of Western countries. He said that due to sanctions imposed by Western countries, policies of freezing foreign assets and controls on global financial institutions, the confidence of many countries in the traditional financial system has weakened. For this reason, many emerging economies including BRICS nations are now promoting trade in their national currencies.

During an address at a major economic forum, Putin said that the world’s economic and trade structure is changing rapidly. According to him, the increasing economic participation of the Global South and BRICS countries is giving a new direction to the international financial system. He claimed that financial instruments were used by Western countries to exert political pressure, causing many countries to turn to alternative payment systems and local currencies.

The Russian President referred to the economic sanctions imposed on Russia following the Ukraine conflict, saying that restricting access to foreign exchange reserves and financial assets has raised international concerns. He said that this made many countries realize that excessive dependence on the global financial system could create risks in the future. For this reason, now various nations are giving priority to the use of local currencies in their business transactions.

Putin noted that Russia has expanded national currency-based trade with many of its major trading partners. He claimed that the bulk of Russia’s exports were now being made in rubles. He also said that the role of digital financial instruments and digital currencies developed by central banks is continuously increasing, which can become an important part of the future global financial structure.

In his address, Putin also emphasized the economic progress of the BRICS group. He said that the contribution of BRICS countries to global economic growth in the last few years has been remarkable. According to him, the combined economic potential of BRICS countries is continuously increasing on the basis of purchasing power parity and this group is becoming the main engine of global development. He also claimed that the growth rate of BRICS countries remains stronger than that of developed economies.

The Russian President also said that changes are visible in global trade routes and logistics networks. New transportation and trade corridors connecting Asia, the Middle East, Central Asia and other emerging regions are rapidly developing. He believes that these new routes will play an important role in making global trade more diverse and balanced.

Although the US dollar still remains the most influential international currency in the global financial system, initiatives by various countries to increase trade in local currencies are being seen as a significant change in the global economic landscape. Experts believe that diversity in international trade and payment systems may increase in the coming years, leading to the global financial structure taking on a more multipolar nature.

Putin’s statements have come at a time when discussions regarding economic cooperation, alternative payment mechanisms and local currency based trade are increasing among BRICS countries. This has started a new debate regarding the future of the global financial system.