- Expect US to Fight Back as Russia & China Lead BRICS Away from Dollar Trade
While Russia and China’s push to reduce the role of the US dollar in trade is catching on, don’t expect Washington to give up its global economic dominance without a fight, political expert Jack Rasmus, told RT.
The two countries’ presidents, Vladimir Putin and Xi Jinping, recently announced their intention to expand the use of their national currencies –the ruble and the yuan– in bilateral financial transactions. The two states have agreed to develop financial instruments for this purpose and signed an intergovernmental agreement to boost cross-currency settlements. Both are also working on their own alternatives to the globally recognized SWIFT payment system.
“It’s only at the very beginning and we’re talking about only two countries. They’re fairy large countries and it could be a significant amount of trade in non-dollar currencies or in kind,” Jack Rasmus, professor of political economy at Saint Mary’s College of California, told RT.
While Russia has already called on allied emerging economies –Brazil, Russia, India, China and South Africa (BRICS)– to develop settlement instruments in national currencies, the anti-dollar push will not go unnoticed and will face a response from Washington, according to the analyst.