Putin at BRICS Summit: Time to Bolster Use of National Currencies
In a virtual address during the BRICS summit in Brazil, Russian President Vladimir Putin delivered a powerful political and economic message, urging member states to move beyond the existing global economic model and to strengthen cooperation, particularly through the use of national currencies in international trade, instead of relying on the U.S. dollar.
Putin asserted that the liberal globalization model, which dominated the global economic landscape for decades, is no longer aligned with current realities. He argued that this system had served the interests of a 'narrow elite of Western countries' and is now 'outdated.'
A Call for National Currencies in Trade
In his remarks, Putin emphasized the need for BRICS nations to bolster the use of their respective national currencies in trade and investment. This shift, he explained, would reduce dependence on the dollar and the Western-dominated financial system.
'This is not an attack against any specific entity,' Putin clarified, adding that it reflects 'the right of countries to build a more just and multipolar global financial system.' The move comes as Russia continues to face extensive Western sanctions, including the freezing of its foreign currency reserves and the exclusion of several Russian banks from the SWIFT global payment system, following its invasion of Ukraine.
BRICS: A Growing Force in Global Economic Power
Putin framed BRICS — now expanded to include countries such as the UAE, Iran, and Egypt — as a powerful force capable of reshaping global economic power dynamics. He called for a "new structure for international economic cooperation," one that would better represent the Global South.
'By strengthening partnerships in energy, technology, trade, and infrastructure, BRICS can become one of the pillars of the new multipolar world order,' Putin remarked. He further noted that the BRICS group represents a third of the world's landmass, nearly half of the global population, and 40% of the world economy, with a combined GDP of \$77 trillion.
Although Putin was physically absent from the summit due to an international arrest warrant issued by the International Criminal Court (ICC), his video address carried significant weight at a time of escalating tensions between the East and West. BRICS countries are intensifying their efforts to counterbalance global institutions like the International Monetary Fund (IMF) and the World Bank, which are often seen as dominated by Western powers.
Putin's remarks echoed similar calls for reform from other BRICS leaders, including South African President Cyril Ramaphosa and Brazilian President Luiz Inácio Lula da Silva. Both leaders stressed the importance of reshaping global governance systems and enhancing the influence of the Global South in international decision-making processes.
As BRICS expands and gains momentum, the summit serves as a pivotal moment for the bloc's collective efforts to challenge the existing economic order. With Western sanctions continuing to isolate Russia and China's growing assertiveness on the global stage, BRICS countries appear determined to carve out a space where they can pursue shared interests without the constraints imposed by Western-dominated institutions.
Looking ahead, the BRICS bloc seems poised to strengthen its efforts in areas such as digital currency development, multilateral trade, and infrastructural cooperation. The ability to diversify away from traditional Western financial systems could become an increasingly important factor in BRICS' evolution into a central player in global economic governance.
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