Putin reveals his response to the dollar in the face of Trump’s decisions

Russia will not ban the dollar, but will reduce its use

In a recent interview, Vladimir Putin said that Russia will not completely abandon the US dollardespite ongoing discussions on dedollarization within BRICS. Instead, Russia aims to reduce the role of the dollar in transactions, focusing on more parsimonious use in global settlements.

Putin said that while dollar payments are gradually decreasing, this movement is part of a natural change dictated by changing global economic conditionsrather than in a total rejection of the American currency.

Meanwhile, BRICS continues to work on a unified payment system to reduce dependence on the dollar. This new system, rooted in the payment networks of each member country, will facilitate financial autonomy by allowing transactions in local currencies. This initiative is part of the bloc’s objective to strengthen its financial infrastructure.

As the Russian president clarified:

“Our proposals are not aimed against the dollar. For us it is simply a matter of meeting the challenge of the modern era, in response to the evolution of the economy that we are reflecting on.”

Trump re-election poses challenge to BRICS dedollarization strategy

However, the re-election of Donald Trump could influence the future of the BRICS dedollarization strategy. During his campaign, Trump emphasized the importance of preserving the global role of the U.S. dollar. He explicitly warned that countries moving away from the dollar could face to tariffs on their goods. This stance could create obstacles for BRICS countries seeking to diversify away from the dollar.

Thus, under the administration of Donald Trump, efforts to strengthen the dollar could pose challenges to the BRICS bloc as he attempts to create alternatives. Despite these potential obstacles, BRICS leaders, including Vladimir Putin, are determined to explore different monetary strategies.

During one of his campaign rallies in September, Donald Trump declared:

“Many countries are abandoning the dollar. They won’t do it with me. I will say, you abandon the dollar, you no longer do business with the United States because we are going to impose 100% tariffs on your goods.”

Additionally, when discussing future financial strategies, Vladimir Putin hinted at potential roles for digital currencies as Bitcoin et XRP within BRICS. Although the adoption of these cryptocurrencies is still in its early stages, Putin has acknowledged interest in exploring digital assets.

However, he stressed that a complete transition to cryptos is premature and the focus remains on on national currencies. Therefore, the President said that member countries prioritize the development of a strong banking network to support intra-BRICS trade.

What conclusion can we draw from this?

In summary, although BRICS continues its dedollarization efforts, Russia has clarified that it does not plan to completely abandon the use of the US dollar. Instead, Moscow aims to gradually reduce the role in international transactions. However, the re-election of Donald Trump, who wants to preserve the dominance of the dollar, could complicate these plans.

Despite these challenges, BRICS remains committed to exploring various options, including the potential use of cryptocurrencies, to strengthen its financial autonomy. The priority nevertheless remains development of strong banking networks to support trade between its members.