Weaponizing the US dollar is a big mistake, Russian President Vladimir Putin told a session at the BRICS Summit in Kazan on Wednesday. He made the remark following a harsh assessment on the currency's use as a political tool by the New Development Bank’s (NDB) president, Dilma Rousseff.
According to Rousseff, the global geopolitics is being adversely affected by the use of the US dollar “as a weapon to change the living conditions of the population.”
The vast wave of sanctions against Russia have forced many Western companies from various industrial sectors including food, clothing, and car manufacturing to leave the country, and have severely restricted people’s ability to travel and make international bank transfers, she noted.
Putin agreed with Rousseff’s assessment.
”Yes, indeed, we can see that this is true. In fact, I think it is a big mistake by those who do this. The dollar remains the most important instrument of world finance and using it as a means of achieving political goals undermines confidence in this currency and reduces its capabilities,” the Russian president said.
Russia does not seek to drop the dollar or defeat it, but instead is being “prevented from working with it,” Putin added. “Then we are forced to look for other alternatives, which is what is happening.”
Many Russian financial institutions were cut off from the Western financial system in 2022 in response to Russia’s military operation in Ukraine. As a result, Moscow has accelerated trade with international partners using their national currencies. The trend has been increasingly supported by BRICS members, which have shifted from using the dollar and euro for trade settlements.
In August, Russian Prime Minister Mikhail Mishustin said that over 95% of mutual settlements between Russia and its biggest trading partner, China, are carried out using the ruble or yuan.
Putin previously stated that the use of local currencies instead of the dollar or euro “helps to keep economic development free from politics as far as possible in the context of today’s world.”