According to Russian President Vladimir Putin, the U.S. dollar-based international financial system is progressively coming apart. "After all, a currency is a derivative of the power of the economy of the country that issues this currency," said Putin, highlighting the fact that "the share of the American economy in world GDP is declining." The Russian president, on the other hand, emphasized the growing proportion of BRICS nations in comparison to the G7 in terms of buying power parity.
Putin on the Collapse of the Dollar-Based Financial System
At the Valdai Discussion Club's 20th anniversary gathering's plenary session on Thursday, Russian President Vladimir Putin stated that the U.S. dollar-based global financial system is progressively disintegrating.
Putin added (Google's translation) "The Bretton Woods system is outdated," adding that Western specialists likewise hold this opinion. The Russian leader continued:
The Bretton Woods system was built around the dollar but is now steadily disintegrating. After all, a currency is a product of the strength of the economy of the nation issuing it.
"The American economy's contribution to global GDP is dwindling. This is statistical data, which should be evident," he emphasized.
Putin, on the other hand, noted that, "in terms of purchasing power parity in relation to the share of the G7 countries, the share of the BRICS countries is increasing, especially after the admission of new members to the organization." He emphasized: "This is already a serious meaning, and the difference is quite serious."
Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) were just admitted to the BRICS economic group. The leaders of Brazil, Russia, India, China, and South Africa made a statement at the end of the BRICS summit in August stating "the importance of encouraging the use of local currencies in international trade and financial transactions."
The Russian president expressed his opinion on the BRICS group establishing a single currency as follows:
For BRICS, we now need to develop a settlement system, create financial logistics to secure payments between our states, and transition to payments in national currencies rather than creating a common currency.
Putin continued, "We reviewed this matter with our experts yesterday, including the potential for a single BRICS currency. Theoretically, it is most likely doable, but in order to even approach this, we need to attain some parity in the growth of our countries' economy, which is a very distant goal.
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