Russian President Vladimir Putin Criticizes the ‘Use of the Dollar as a Political Weapon’ – During a meeting with Dilma Rousseff, the president of the New Development Bank, Russian President Vladimir Putin criticized the use of the dollar as a political tool, emphasizing its negative impact on the global economy and the challenges it presents for the NDB’s growth in supporting third-world countries facing tough conditions.
The discussion took place at the second Russia-Africa Summit in Saint Petersburg. Talking to Rousseff, Putin stated: “I am confident that you will make every effort to develop this institution. In the current conditions, it is not easy to do so, given the developments in global finance and the use of the dollar as a political weapon.”
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Furthermore, Putin declared that the BRICS countries (Brazil, Russia, India, China, and South Africa) were “increasing the use of national currencies in their mutual settlements,” mentioning that the NDB might have a role to play in boosting these joint activities. Rousseff asserted that despite the liquidity challenges, the bank is expected to assume a more prominent role in the emerging multipolar world order.
She explained: “The bank should play a major role in the development of a multipolar, polycentric world. We must work to attract investment in the markets of our partners.” Putin had declared previously that this new multipolar world already being shaped will be “more just and democratic.” Rousseff also talked in favor of using national currencies for international trade.
Stating: “I also believe that the countries of the developing world can freely make their foreign trade transactions between themselves in their national currencies.” In a report published in May, the Roscongress Foundation, a Russian think tank supporting the Russia-Africa Summit, outlined the NDB’s role as an equivalent to the International Monetary Fund (IMF).
According to their vision, the NDB could provide “energy loans” based on the energy exporting capacities of its member countries. These loans would be backed by the NDB’s multi-currency nature, making them highly liquid, akin to the IMF’s Special Drawing Rights (SDR).