According to a new report, Russia and Islamic countries discussed de-dollarization and the state of the global financial system. According to Russia’s state-funded news organization TASS, Russian Deputy Prime Minister Alexey Overchuk said the talks are part of a broader analysis of “current global shifts.” Overchuk indicated that the agenda focuses on de-dollarization, financial independence, industrial production, energy and food security. The following was stated by him:
“Of course our relationships become [met islamitische landen] influenced by global shifts and global trends. We are talking about processes of de-dollarization and the establishment of an independent financial system.
This broader agenda and its influence on countries and relations allows us to see that relations between Russia and the Islamic states have a very great and very positive future. The government is doing a lot to ensure further development in these areas.”
Russia has also expanded its financial ties with Iran after facing a wave of international sanctions following its invasion of Ukraine. According to Forbes, the second largest Russian bank, VTB, has just opened a representative office in Iran. Meanwhile, two Iranian banks are preparing to open physical branches in Russia.
According to Russian Deputy Prime Minister Alexander Novak, about 80% of mutual settlements between Russia and Iran are now conducted in rials and rubles, not the US dollar.
The president of Venezuela also sees de-dollarization as inevitable
Venezuelan President Nicolás Maduro has said a significant decline in the global use of the US dollar is now inevitable. In his most recent weekly update, Maduro pointed to US sanctions as the main reason why countries are looking for ways to reduce their dependence on the world’s reserve currency. Maduro indicated that African countries set the tone in this:
“They are contributing to the process of the inevitable de-dollarization of the world. The more multipolar the world is, the more multicentric the world is. As the world continues to move towards equilibrium, a basket of currencies will emerge…
Many alternative initiatives to the US dollar are emerging. We could say that we are starting to live in a constantly accelerating process of de-dollarization of the trading world, of world trade.”
Maduro said Zimbabwe’s new gold-backed digital currency is an important sign of things to come. The currency is intended for payments and as a store of value for citizens. Maduro also praised the BRICS economic alliance, which recently launched a New Development Bank (NDB) offering loans for public and private projects.
BRICS, which stands for Brazil, Russia, India, China and South Africa, is also exploring launching a global currency that avoids using the US dollar.