January 19, 2023 10:57 Last updated: 11:09
Recently, senior officials or former senior officials from many countries have talked about the issues of “non-dollar settlement” and “de-dollarization” on several occasions, hoping to establish a fairer payment system and avoid excessive dependence on the US dollar. .
Senior officials or former senior officials from many countries have spoken about the issues of “non-dollar settlement” and “de-dollarization” on several occasions.
On January 18 local time, South African Foreign Minister Naledi Pandor (Naledi Pandor) said in an interview with the Russian Satellite News Agency in Pretoria that the BRICS countries which include emerging economies hope to find a way to avoid the US dollar. a fairer payment system that does not favor rich countries.
Screenshot from Russian Satellite News Agency report.
“We have always been concerned about the dominance of the dollar and we really need to find an alternative currency … the current system tends to privilege very rich countries, which is often a challenge for countries like ours because we have to pay in US Dollars, which is much more expensive compared to various currencies. “
He revealed that the BRICS countries are considering a new payment system to get rid of the US dollar control. “So I think it is crucial to have a fairer system, which is something we are discussing with the BRICS ministers in our discussions in the economic field.”
Pandol pointed out that one of the reasons why the BRICS countries established the BRICS New Development Bank (NDB) in 2014 was to find an alternative to the US dollar-based payment structure.
He explained: “The BRICS countries have many sectoral committees dealing with issues such as politics and security, economics and people-to-people exchanges. In the economic context, we are looking at how the BRICS New Development Bank and other institutions can help us build a fairer currency trading system.”
Speaking about the issue of unilateral sanctions by the United States, Pandor pointed out that South Africa has expressed to the United States that due to the impact of unilateral sanctions by the United States on some countries, it is hoped that the United States will second -. examine them.
“We’ve always had problems with unilateral sanctions and their impact on many countries that are not involved in a particular conflict, so we’ve said to our friends in the US that we really want them to revisit this practice of imposing unilateral sanctions,” he said. This tactic is often not very helpful in solving problems.” Pandor said, for example, that unilateral sanctions have not worked in Zimbabwe, Venezuela or Cuba.
Last year, Russian President Vladimir Putin also revealed that BRICS countries are working together to develop a reliable alternative mechanism for international settlements and study international reserves based on a basket of BRICS countries’ currencies.
At the opening ceremony of the BRICS Business Forum held on June 22 last year, Putin said: “We are working with our partners in the BRICS countries to develop a reliable alternative mechanism for international settlements. The Russian financial information transfer system has been transferred to r organization. BRICS countries. Banks are opening. Russia’s MIR payment system is expanding its presence. We are studying the possibility of creating an international reserve based on the BRICS currency basket.”
In a forum meeting held by the ISEAS Yusof-Ishak Foundation, a think tank in Singapore on January 10 this year, several former government officials from Southeast Asian countries spoke about the ongoing process of “de-dollarization” in their countries weakening local currencies. , economies in the region are taking various measures to reduce risk.
Former Singaporean Foreign Minister Yeo Wing Man, who took part in the meeting, said: “The US dollar is a curse for all of us. If you arm the international financial system, there will be more alternatives, and the US dollar will lose its international monetary system. advantages.” He pointed out that, in times of crisis, the dollar appreciates further, as it did against Russia in the conflict between Russia and Ukraine, and this puts more pressure on third party countries that having to rely too much on the use of the dollar.
Later, the former Minister of Trade of Indonesia Thomas Lembong also spoke about “de-dollarization” He encouraged officials from different countries to find more ways to avoid excessive dependence on the US dollar.
On January 17, local time, the Minister of Finance of Saudi Arabia, Mohammed al-Jadaan, who is attending the 2023 annual meeting of the World Economic Forum in Davos, Switzerland, said in an interview with Bloomberg: “Discuss how we settle trade. Not it doesn’t matter if it’s in dollars, euros or Saudis.”
“The Saudi finance minister says the kingdom is open to discussing trade in currencies other than the dollar, in what could be another challenge to dollar hegemony,” Bloomberg reported.
As the world’s largest exporter of crude oil, Saudi Arabia is the backbone of the petrodollar system. Since the mid-1970s, Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC) have accepted the US dollar as the accounting and settlement currency for international oil transactions, allowing oil to be pegged to the US dollar. About 80% of current global oil transactions are settled in US dollars.
Saudi Arabia is trying to strengthen ties with key trading partners including China, Jadan said: “We have a strong strategic partnership with China, we have the same strategic partnership with other countries including the United States, and we also want to develop the that relationship with China. Europe and other countries that are ready and able to work with us.”
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