Russian Foreign Minister Sergey Lavrov has declared that the actions of the BRICS bloc, integrated by Brazil, Russia, India, China, and South Africa, are focused on reducing dependency on the economic system managed by the U.S. and its Western allies. He denied a possible unified currency for all BRICS countries at this juncture.
Russian Foreign Minister Lavrov: ‘No One Is Talking About a Single Currency Now’
Russian Foreign Minister Sergey Lavrov stated one of the objectives of the BRICS bloc was to achieve independence from the Western-controlled economic and payment system in its internal trade settlements and transactions. At the BRICS summit recently held in Johannesburg, Lavrov explained that this would be one way of escaping the hegemony of the U.S. as the issuer of the dollar.
Quoted by the state-owned Russian news outlet TASS, Lavrov stated:
All attention is now focused on finding ways to ensure our mutual trade, mutual economic projects and investments in such a way so as not to depend on the system controlled by the United States and its Western allies.
Furthermore, Lavrov denied the idea that the bloc was studying the creation of a common currency, stressing that “no one” was “talking about a single currency now.” This contradicts prior reports of economists who claimed that a common currency was being discussed and that its value would be pegged to the price of gold.
Alternative Solutions to Reduce U.S. Dollar Dependence
However, Lavrov talked about a possible alternative involving a currency pool among BRICS nations, explaining it could be a precursor to the solution to dependence on the U.S.-managed economic system.
Lavrov explained this idea was “a forerunner to the steps that the BRICS countries are planning to take – steps to facilitate the use of national currencies, but most importantly, to create an alternative payment system.”
While he confessed that the final form of this evolving solution was unknown to him, he stated that the bloc should be preparing to advance it further, calling for the creation of a working group to present recommendations to the heads of state that would be discussed at the next BRICS summit, to be held in Kazan next year.
Lavrov’s concerns made it to the BRICS summit “Johannesburg II Declaration,” where the bloc declared “the importance of encouraging the use of local currencies in international trade and financial transactions.”
What do you think about Sergey Lavrov’s statements about creating an alternative payment system independent from the U.S. and the West? Tell us in the comments section below.