Coin World News Report:
Vladimir Putin has just admitted the reality he has been fighting against. Despite the efforts of the BRICS countries to break free from the control of the US dollar, it remains the most powerful tool in the global financial system.
Speaking at the annual summit in Kazan, Putin pointed out that the US has been using the dollar as a political weapon to punish countries that do not comply with its rules. In his own words:
“The dollar is being used as a weapon. We are indeed aware of this reality. I believe that those who engage in such practices have made a grave mistake.”
The Russian president argued that the US has harmed Russia through unilateral sanctions and jeopardized the fiscal independence of any country that could become a victim of such actions.
Russia and China abandoning the dollar
Russia and China have taken significant steps in reducing their reliance on the dollar. According to Putin, approximately 95% of trade between the two countries is now conducted using the Russian ruble and the Chinese yuan.
By doing so, Russia and China are attempting to break free from the Western-dominated financial system, which Putin has been actively promoting. He hopes to extend this effort beyond himself and China.
Putin called on the BRICS countries to seek alternatives to the traditional Western financial networks, such as the Swift system. He told world leaders:
“It is not us who refuse to use the dollar. But if they do not let us work, what can we do? We are forced to look for alternatives.”
BRICS countries and the new global payment system
Putin also proposed the development of a new BRICS investment platform aimed at promoting economic cooperation among member countries and providing financial resources for developing countries in the global South.
He believes that this platform will become a powerful tool to support the economies of BRICS countries. However, not everyone agrees with Putin’s idea. Some BRICS members, namely Brazil and India, have expressed concerns.
They are worried that the EU could become an anti-Western alliance dominated by China, which could damage their relationship with the US.
Meanwhile, at the summit, Putin rolled out the red carpet for leaders interested in breaking free from US financial dominance. These leaders include Turkish President Recep Tayyip Erdogan.
Erdogan’s presence is significant as he is the only NATO leader attending the summit. It is well known that he likes to refer to Putin as his “dear friend,” which has not always pleased his NATO allies, but Erdogan seems determined to maintain strong ties with both Russia and the West.
For Putin, this demonstrates that despite the West’s attempts to isolate Russia after the invasion of Ukraine, the Kremlin is far from being a global outcast.
Meanwhile, there are reports that North Korea has dispatched troops to support Russia’s war efforts in Ukraine. This alliance is surprising considering Russia had joined sanctions against North Korea to deter its nuclear ambitions.
This only shows to what extent Putin is willing to seek support from different countries in the face of global opposition. Just a few months ago, he was seen driving with North Korea’s leader Kim Jong Un.
Are India and China repairing their relationship?
Another notable example is the summit between the two leaders on the mountaintop. They had not held formal talks for over five years, but this summit provided a platform for them to reach agreements on important issues.
Xi emphasized that cooperation between China and India is in line with the interests of both countries, and Modi also believes that maintaining peace and stability along the disputed border should be a priority.
They discussed the need for mutual trust and respect, indicating that both countries are willing to repair their relationship, which would make Putin’s mission much easier.
