Russia Threatens Dollar With Alternative Global Currency

Russia Threatening Dollar With Alternative Global Currency

Stefan J. Bos

Russia says it wants to develop a new global reserve currency with China and “other BRICS nations,” in a significant challenge to the dominance of the U.S. dollar.

BRICS has come to include the five major emerging economies Brazil, Russia, India, China, and South Africa.

Russian President Vladimir Putin told the BRICS Business Forum that the “matter of creating the international reserve currency based on the basket of currencies of our countries is under review.” He added that “We are ready to openly work with all fair partners.”

The announcement published Friday was to add to East-West tensions fueled by the Russian invasion of Ukraine, which seeks closer ties with the European Union and NATO military alliance.

The dollar has long been seen as the world’s reserve currency, but experts say its dominance in share of international currency reserves is waning.

Central banks are looking to diversify their holdings into currencies like the yuan, as well as into non-traditional areas like the Swedish krona and the South Korean won, according to the International Monetary Fund