De-Dollarization Tops BRICS Agenda

Date: 12 July 2024 - 23:31

News ID: ۱۲۹۳۳۹

ST. PETERSBURG (Dispatches) -- Russian President Vladimir Putin Thursday described BRICS as one of the key elements of the emerging multipolar world order, which considers the interests of all states.
Speaking at the BRICS Parliamentary Forum in St. Petersburg, Putin said the main goal of Russia’s current presidency in the association is the establishment of the most favorable conditions for all member states’ gradual development.
“BRICS is one of the key elements of the emerging multipolar world order, which increasingly reflects the interests and aspirations of the global South, the global East, and our supporters around the world,” he was quoted as saying by the state-run TASS.
“We are open to strengthening cooperation with all countries that express their interest in the BRICS activities, we engage in an active dialogue in the BRICS+/BRICS Outreach format, and we are working on the establishment of the partner state category,” Putin added.
Russia holds the BRICS presidency this year. BRICS is an intergovernmental organization comprising Brazil, Russia, India, China and South Africa. Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates have joined BRICS as its new members.
De-dollarization topped of the agenda of the event, with Vyacheslav Volodin, the chairman of the State Duma (the lower house of the Russian parliament), noting that dollar is losing its status as a world reserve currency.
He said sovereign countries, particularly BRICS members, are beginning to ditch the “toxic” dollar in order to “ensure their financial security.”
“Last year, its (dollar’s) share in export-import transactions within the framework of the association was only 28.7%,” Volodin added.
He noted that the U.S. and Western countries have used international payment systems and the dollar as a tool of political pressure, but the sanctions have backfired.
“Washington and Brussels tried to stop the development of our countries and other states by introducing illegitimate sanctions, declaring trade wars, stealing gold and foreign exchange reserves, using international payment systems and the dollar as an instrument of political pressure,” Volodin said.
“The sanctions backfired at their initiators: the United States lost its economic leadership. All attempts to regain it, including by weakening the European Union, did not bring results.”
Volodin said the increasing number of BRICS members indicates the demand for a multipolar world order.
“We see that now more and more countries are striving to strengthen their sovereignty, national and cultural identity. This process is irreversible.”
Iran’s Parliament speaker Muhammad Bagher Ghalibaf stressed that de-dollarization will lift the U.S. pressure off emerging economies.
He said the national currencies swap agreement recently finalized by Tehran and Moscow has become an example of effective cooperation on the path to de-dollarization.
“The recent financial agreement between Iran and Russia is a successful example of cooperation between the two countries in the field of de-dollarization,” Tass news agency quotes Ghalibaf as saying.
Last week, Muhammadreza Farzin, the Central Bank of Iran (CBI) governor, announced that the swap agreement that enables Iran and Russia to trade in local currencies was finalized.
“The parliaments of the BRICS member states should make every effort to deepen cooperation in creating routes for money transfers and developing trade corridors for the exchange of goods and services between the BRICS countries,” Ghalibaf said.
Ghalibaf also reiterated the Islamic Republic’s support for a multilateral world system.
“The current world system has failed to take fruitful measures in the field of solving regional and international disputes, putting an end to wars, conflicts and inequalities,” he said.
Ghalibaf noted that the Islamic Republic is keen to boost relations with BRICS member countries.
“Iran and the republic’s parliament understand that supporting and strengthening relations with BRICS member countries, including this grouping’s development, is of paramount importance to them,” he stressed.
Ghalibaf also hailed the BRICS Parliamentary Forum as an opportunity to enhance cooperation between BRICS members to achieve common goals.
“The BRICS Parliamentary Forum is a very important instrument to develop international relations, influence this world, and establish a new world order that would be more open, transparent and would result in more effective cooperation between our countries.”
BRICS was formed by and initially consisted of Brazil, Russia, India, China, and South Africa, which collectively represent around 40% of the global population and a quarter of the world’s gross domestic product (GDP).
In a post on his Telegram channel, Volodin stressed that BRICS has turned into one of the world’s largest economic centers since it was founded 15 years ago.
“During 15 years of its existence BRICS has turned into one of the largest economic centers.

That said, its participants have improved their positions (according to revised figures by the World Bank for 2023) despite challenges and sanctions,” Volodin said.
He noted that the share of BRICS members in the global economy already exceeds that of the Group of Seven (G7): the United States, Japan, Germany, Britain, France, Canada and Italy.
“The share of BRICS nations in global GDP on [purchasing power parity] PPP has grown to 36.8%, outpacing the share of G7 of 29%. This gap will only increase,” Volodin stressed.
This year, Russia is taking up the one-year rotating chairmanship of the group. The main event will be the BRICS summit that will be held on October 22-24 in Kazan.