END OF THE DOLLAR: BRICS Single Currency Would Replace USD, Russian Deputy

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Published on: Oct 4, 2018 @ 09:09 – The creation of a single currency of the BRICS countries would ultimately replace the dollar, said Anatoly Aksakov, chair of the State Duma Committee (Russian lower house of parliament) to the Financial Markets.

Amid rising US rhetoric about imposing sanctions, Russian officials have begun to actively discuss the possibility of replacing the dollar with other currencies. Russian President Vladimir Putin has previously noted that Russia will not fail to invest in dollars and pay in US currency, but is aware of the risks of sanctions and tries to minimize them.

Russian President VTB chairman Andrei Kostin presented the head of state with his plan to de-dollarise the Russian economy and claimed that the president supported him.

The discussion on the creation of a single currency of the BRICS countries has been discussed for a long time. Even the issue of a common cryptocurrency has been intensely discussed, but the parties have not yet reached a common position. In any case, countries have already agreed on mutual loans in national currencies.

“If you have a common BRICS currency that raises respect and confidence, it could also become a dollar substitute,” says Aksakov.

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However, he noted that it is not in favor of the complete abandonment of the dollar.

“I do not think that it is necessary to abandon the dollar completely,” he said. “The conditions must be created to work effectively and independently of the dollar, so that the transition is almost imperceptible,” explained the deputy.

The Kremlin reported on an increase in the use of national currencies in foreign trade, but admitted that de-dollarization is a difficult and protracted process. According to the former vice-president of the Central Bank of Russia, Konstantin Korischenko, the de-dollarization is similar to a revolutionary situation.

Earlier, the president of one of the largest Russian banks, VTB, Andrei Kostin, presented a plan for the country to gradually abandon the dollar. The plan provides for a reduction in the use of the US currency in international transactions.

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