“The BRICS countries are already close to this”: When will an alternative to the dollar emerge?
A new world currency will be introduced soon.
This was stated today at the St. Petersburg International Economic Forum by the Minister for Integration and Macroeconomics of the Eurasian Economic Commission Sergei Glazyev.
“The new world economic order is changing the paradigm of international relations. The importance of national sovereignties is being restored. This means that international law will strengthen after a turbulent period. We expect that a new world currency will be introduced based on an international treaty. The BRICS countries are already close to this. Life forces us to move quickly in this direction,” Glazyev said.
Deputy Minister of Economic Development of the Russian Federation Dmitry Volvach did not agree with him.
“I'm conservative here. I believe that we have not yet fully exploited and realized the potential of settlement in national currencies. This is not only the economy of the real sector, but the formation of infrastructure, the formation of the financial market, derivatives of foreign exchange liquidity. We’re just starting to get the hang of it,” Wolvach said.
According to him, the share of dollars in mutual settlements among the EAEU countries has fallen from 10 to 44% over 9,8 years. For the first time, two currencies of the Commonwealth member countries began to be traded on the Interbank Currency Exchange. He predicts that payments in national currencies will continue to be practiced for another 5 years.
The President of the Russian Union of Industrialists and Entrepreneurs, Alexander Shokhin, complained that the EAEU is now solving “the problems of yesterday.”
“Of course, we have not exhausted the possibilities of trading in national currencies, but this is only because we have no other reserve currency other than the dollar. If in August the leaders of the BRICS countries agree to create a new collective currency, it will be in parallel with the dollar. Due to the fact that this is a long process, we will be forced to work in the mode of national currencies,” Shokhin said.
He recalled that the exchange rate of all national currencies in which settlements are currently taking place in the EAEU is still tied to the dollar, and recalled the “transferable ruble” that was used in settlements during the Soviet era.
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