Newsroom
Russian President Vladimir Putin is leading efforts to reduce global reliance on the US dollar by promoting "de-dollarization" at a summit with over 20 world leaders. However, despite this push, summit organizers have advised attendees to bring US dollars or euros for transactions, highlighting the challenges Russia faces in breaking free from the dollar's dominance.
This contradiction underscores the difficulties of moving away from the US-dollar-dominated financial system, especially for a heavily sanctioned country like Russia. Due to sanctions, international payment systems like Mastercard and Visa are unavailable in Russia, leaving limited options for attendees. While China's UnionPay cards offer some alternatives, restrictions still apply, forcing most visitors to rely on the very currencies Russia aims to move away from.
Putin remains determined, though, emphasizing the benefits of local currency use within BRICS nations (Brazil, Russia, India, China, and South Africa). He claims it would increase financial independence, lower debt costs, and mitigate geopolitical risks. Despite the summit's focus on reducing dollar dependence, practical realities—like the reliance on "toxic" currencies—continue to complicate these ambitions.
[With information from Business Insider]
