BRICS: Putin’s Minister Attacks U.S In S/Africa, Insists On Boycott Of Dollar By Emerging Economies

Russia’s Foreign Minister, Sergey Lavrov, has called on the international community to crush the alleged “hegemony” of the West led by the United States through a consistent reduction in the use of the US dollars for trade and bilateral transactions.

Lavrov shared his view with South Africa’s Ubuntu Magazine as the Brazil, Russia, India, China and South Africa (BRICS) 15th annual summit commences in Johannesburg today, August 22 to August 24.

The US dollar became popular after World War 1 and has continued to be the world’s widely used currency since then.

According to data from the International Monetary Fund, the US dollar led the World’s official foreign exchange reserve by currency as of the first quarter of 2023.

The Russian government which fought on the side of the United States (Allied Forces) in WW1 has now taken a different position on US foreign policy, accusing it of global dominance and interference.

Russia, a founding member of BRICS, was among three other emerging economies that met to improve their economies and fine-tune ways to adopt a global reserve currency other than the US dollar.

Its first meeting was held in Russian territory in 2019 and Russia and the likes of China have remained consistent in challenging the perceived US dominance.

The BRICS New Development Bank (NDB), had recently informed Financial Times that it will soon be lending South African and Brazilian currencies for the purpose of reducing reliance of dollars.

“We expect to lend between $8bn-$10bn this year.

“Our aim is to reach about 30 per cent of everything we lend . . . in local currency,” the bank’s president, Dilma Rousseff, had said.

Having arrived in South Africa for the summit, Lavrov again attacked the US dominance through the US dollars.

He tactfully asked for a shift in direction in terms of financial transactions.

“Attempts of the “collective West” to reverse this trend with a view to preserving its own hegemony have an exactly opposite effect.

“The international community is tired of the blackmail and pressure from the Western elites and their colonial and racist manners. That is why, for example, not only Russia, but also a number of other countries are consistently reducing their dependence on the US dollar, switching to alternative payment systems and national currency settlements,” he told the magazine.

He assured African countries of further support from the Russian government in their aspirations to play an “increasingly significant role in resolving the key problems of our time.”

The BRICS Summit is going to prioritise “strengthening the potential of the New Development Bank and the BRICS Contingent Reserve Arrangement, improving payment mechanisms, and increasing the role of national currencies in mutual settlements”, as disclosed by Lavrov.

Meanwhile, BRICS had revealed that several countries have shown interest in joining the group.

The US sees Russia as a global actor that is not “responsible”.