Russian President Vladimir Putin has called for an alternative international payment system to reduce dependence on the US dollar. Speaking at the Brics summit, Putin stated that nearly 95% of trade between Russia and China is now taking place in rubles and yuan. The move towards de-dollarization unnerves some Brics members, who fear it could lead to a pro-Chinese and anti-Western alliance.

Background:

The Brics summit has brought together leaders from nine countries, including India, China, South Africa, and Russia. The meeting aims to promote economic cooperation and reduce reliance on the US dollar as a reserve currency. However, differing views among member nations have hindered progress on establishing an alternative payment system.

Perspectives:

A sanctions specialist at the European Council of Foreign Relations notes that it is difficult to imagine widespread adoption of Brics financial tools globally, given the US dollar's entrenched dominance in trade transactions and foreign exchange reserves.

Source: https://www.wionews.com/business-economy/putin-calls-for-alternative-international-payment-system-to-combat-dollar-dominance-at-brics-meeting-770280