The five emerging nations already outpace the G7 in economic growth, Aleksandr Babakov claims
Russia together with fellow BRICS members and African countries is discussing the creation of a new global currency that could challenge the US dollar’s dominance and become analogous to the euro for non-Western states, State Duma Deputy Speaker Aleksandr Babakov has said.
In an interview with Russian media on Wednesday, Babakov stated that having passed the test of Western sanctions, Moscow is ready to take on a new role in the world order and, together with partners, to undermine the hegemony of the US.
He believes the Russia-Africa summit held in St. Petersburg last week is direct evidence of the failure of the collective West to isolate Russia, and he outlined the new trends in the system of international relations.
Babakov stressed that achieving real sovereignty for Russia would necessitate shifting away from the dominance of the US currency. Moscow and its partners would need to agree on a new monetary unit and on the rules for its functioning, he explained.
When asked about the new currency, the Russian MP responded: “This is not the yuan and not the ruble. There are already certain formulations… The name is not important, but it should be an analogue of the dollar.”
“After all, the BRICS in terms of its potential today is greater than the G7. That is, the potential of the market where this currency can function is very wide. There are no reasons to be tied to the dollar…” Babakov argued.
The BRICS nations have been seeking to shift further away from the US dollar in mutual trade. The de-dollarization trend has been gaining momentum following the sanctions that effectively cut Russia off from the Western financial system. Numerous developing nations – including fellow BRICS members China, India, Brazil and South Africa – have also started to move toward alternative currencies in trade.
Moscow floated the idea of introducing a BRICS currency last year. President Vladimir Putin said last June that member states were working on developing a new reserve currency based on a basket of the national currencies used by the five-nation bloc.