Speaking at the SPIEF plenary session in St. Petersburg, Russian President Vladimir Putin opened up on why BRICS is moving beyond the US dollar. He highlighted several reasons, including aggressive tactics from the West to maintain its financial hegemony. This is proving costly for the US and Europe, as developing countries have realized the dangers of keeping the US dollar in their reserves.

“All countries, without exception (BRICS), now understand that just as Russia can instantaneously lose access to their legitimate assets denominated in the US dollar or euro, they can also lose access to the Western financial and payment infrastructure,” Putin said. This is what makes holding the USD a risky affair, as it could become worthless during sanctions.

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Payments in National Currencies Is the Only Savior For BRICS, Not the US Dollar

Putin stressed that to maintain an economic balance, payments in local currencies protect BRICS members, while the US dollar destroys it. This is the sole reason why alliance members are hesitant to settle payments in the US dollar. “They are transitioning to payments in national currencies. They are making wider use of alternative payment systems, increasing the role of digital financial assets as well as the digital currencies of their central banks,” he said.

He also explained that Europe is aiding the US in its aggressive policies against BRICS and other emerging economies. “We see the short-sighted policies pursued by the European bureaucracy. Which is accompanied by aggressive rhetoric and leads to further loss of Europe’s position in the world economy. Moreover, it undermines regional as well as global security. As a matter of fact, the European elites are provoking chaos, and they are trying to plunge more and more countries into this chaos,” the Russian President said, referring to the conflict in the Middle East.

Also Read: BRICS: 80+ Countries De-Dollarize As Yuan, Rupee, Ruble Replace US Dollar