Russian President Vladimir Putin has stated that the U.S. dollar-based global financial system is gradually collapsing. “After all, a currency is a derivative of the power of the economy of the country that issues this currency,” Putin noted, emphasizing: “The share of the American economy in world GDP is declining.” In contrast, the Russian president highlighted the increasing share of BRICS countries in terms of purchasing power parity compared to the G7 countries.
Putin on U.S. Dollar-Based Financial System Collapsing
Russian President Vladimir Putin conveyed at the plenary session of the 20th-anniversary meeting of the Valdai Discussion Club on Thursday that the global financial system based on the U.S. dollar is gradually collapsing.
“The Bretton Woods system is outdated,” Putin said (translated by Google), noting that he is not the only one with this view, as Western experts also share this perspective. The Russian president added:
This Bretton Woods system was created on the basis of the dollar, but it is all gradually collapsing. After all, a currency is a derivative of the power of the economy of the country that issues this currency.
“The share of the American economy in world GDP is declining. This is also an obvious thing, this is statistical data,” he stressed.
In contrast, Putin emphasized that the share of the BRICS countries “in terms of purchasing power parity in relation to the share of the G7 countries, is increasing, especially after the admission of new members to the organization.” He pointed out: “This is already a serious meaning, the difference is quite serious.”
The BRICS economic bloc recently extended membership to Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE). At the conclusion of the BRICS summit in August, the leaders of Brazil, Russia, India, China, and South Africa declared “the importance of encouraging the use of local currencies in international trade and financial transactions.”
Commenting on the BRICS group creating a common currency, the Russian president opined:
For BRICS, we now need not to create a single currency, but we need to establish a settlement system, create financial logistics in order to ensure payments between our states, switch to payments in national currencies.
Putin further shared: “Yesterday we discussed this issue with our experts, including the possibility of creating a single BRICS currency. Theoretically, yes, it’s probably possible, but in order to ever approach this, we need to achieve a certain parity in the development of the economies of our countries, but this is a very long-term prospect.”
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