Putin concedes defeat in attempt to dethrone U.S. dollar with BRICS single currency
Russian President Vladimir Putin has conceded the failure of Russia's ambitious project aimed at challenging the dominance of the dollar as the primary global currency. The grand promises to establish the so-called "BRICS single currency" have fizzled out, and the idea is no longer on the table. Back in 2022, Russia announced plans to create a unified BRICS currency, with pledges to back it with land and rare earth metals to make it more attractive than the dollar.
However, it appears that these assurances were merely propaganda with little chance of realization. This notion was underscored by Putin on Friday, October 18, during a meeting with journalists from BRICS member countries. According to the Russian agency Interfax, the Russian leader admitted that the nations within this bloc are not prepared to create a unified currency.
Putin attributed this unpreparedness to "differences in the structure and levels of economies." He stated that the issue of a single currency "has not matured," and hence, it is not under consideration at this time. Now, Putin is urging BRICS member countries to "act cautiously and without haste," drawing parallels to challenges purportedly faced during the creation of the Euro in the EU. Instead of a unified currency, the Kremlin is proposing trade in national currencies, leveraging "electronic tools," and creating a "SWIFT analogue."
Previously, the pursuit of a "BRICS single currency" was dismissed by South Africa and India. Officials in South Africa's finance ministry pointed out the complexity of such an economy and expressed skepticism about the viability of Russia's proposal. Similarly, India’s finance ministry conveyed its intent to strengthen the national currency.