Foreign Minister Lavrov: Russia Actively Embracing National Currency Settlements as USD's Share Declines

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Russia is actively pursuing a shift towards settlements in national currencies with its partners, according to Foreign Minister Sergey Lavrov. He emphasized that this transition away from the U.S. dollar is expected to gain further momentum. Lavrov highlighted that this trend is not limited to Africa, but also includes Latin America, Asian countries, as well as Iran, India, and China.

Lavrov's comments were made in response to Kenya's plans to pay for oil exports in its local currency. He stated that as trade volume increases, it becomes more practical to use national currencies for payments, and this represents the future of global trade. He further emphasized that Russia is already actively engaged in settlements using national currencies, resulting in a steady decline in the share of the U.S. dollar. Lavrov concluded that this process will continue to gain traction.

The foreign minister also mentioned the proposal put forward by Brazilian President Luiz Inácio Lula da Silva, who advocates for the establishment of a payment system independent of the U.S. dollar or euro. President Lula da Silva envisions a system that relies on decisions and agreements made within the framework of the BRICS New Development Bank. The Brazilian president has been an advocate for de-dollarization and has urged developing countries to move away from the U.S. dollar as a reserve currency and instead use national currencies for trade. He also supports the creation of a common currency among BRICS nations.

Russia's Deputy Prime Minister for Eurasian Integration, Alexey Overchuk, recently highlighted significant progress in the use of national currencies within the Eurasian Economic Union (EAEU). Overchuk revealed that in March, settlements conducted in national currencies between EAEU member states accounted for 90% of mutual trade. This development signifies the EAEU's effective transition towards de-dollarization, with national currencies becoming the primary means of payment.

De-dollarization efforts have gained momentum across the globe. In addition to the BRICS and the EAEU, 10 Southeast Asian nations belonging to the Association of Southeast Asian Nations (ASEAN) have agreed to promote the use of national currencies. Moreover, officials from nine Asian countries recently convened in Iran to discuss measures aimed at reducing dependence on the U.S. dollar.

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