We know we live in interesting times when even mainstream capitalist, Atlanticist press has to recognize that the U.S attempts to ‘alienate’ Russia have resulted more in alienating the U.S from the world. Russia has joined the growing number of countries struggling against the hegemony of the US currency, making their first progress in this direction, The Wall Street Journal wrote.
As the paper notes, there has been a decline in the share of physical and legal persons deposits in foreign currency in Russian banks – falling to 26% in September this year. In addition, the share of export revenues in dollars in the second quarter decreased to 68% compared to 80% in 2013.
The rapid growth of trade between Russia and China also shows a decline in dependence on the dollar, the newspaper wrote. Bilateral ruble and yuan negotiations over the past four years have increased almost four-fold.
The article emphasizes that several countries are adhering to a similar strategy. In particular, EU authorities are trying to find ways to expand the role of the euro and are openly discussing the possibility of creating a new independent trading system from the United States. Countries like Iran, Turkey, Venezuela and Pakistan are also struggling to reduce dependence on the dollar.
Speaking at the 18th session of the Council of Foreign Ministers of the D-8 (development cooperation organization, including Bangladesh, Egypt, Nigeria, Indonesia, Iran, Malaysia, Pakistan and Turkey) in Antalya earlier this month, Turkish Foreign Minister Mevlut Cavusoglu announced that Ankara seeks to use national currencies in trade with Russia, China and Iran.
“Turkey is preparing to trade in local currencies with countries such as China, Russia, Iran and Ukraine. We are also continuing negotiations with other countries,” he said.
Cavusoglu also said it is possible to implement such a plan with its D-8 partners.
“It is possible to do this within the D-8, so we propose the formation of a clearinghouse within the D-8,” he said.
This is not the first time a senior Turkish official suggests using national currencies in trade with his partners. For example, the president of the country Recep Tayyip Erdogan has repeatedly appealed to stop the monopoly of the dollar and use local and national currencies.
According to Erdogan, Ankara may move to payments in national currencies in trade with its main trading partners – China, Russia, Iran and Ukraine.