Russian Foreign Minister: 'People are fed up with USD'

Russian Foreign Minister Sergey Lavrov said the US dollar is becoming less attractive because it is used to reduce the competitiveness of other countries.

“Everyone is fed up with the dollar. It is being used as a tool for influence and reducing the competitiveness of countries in various regions,” he said in an interview with Rossiya24 and RIA Novosti on December 28.

He also mentioned Brazilian President Lula da Silva's proposal that Latin America needs an alternative currency to the dollar. Lavrov said the BRICS group of emerging countries "is also studying this proposal" by Mr. da Silva for a global scope.

Russian Foreign Minister Sergey Lavrov in Moscow in February 2022. Photo: Reuters

Earlier, Lavrov also accused the US and its European allies of using many " geopolitical tools", including "economic and trade wars". He said Russia and many other countries are "determined" to reduce their dependence on Western currencies, by switching to other options for trade payments.

As for Russia-China trade, about 95% of bilateral transactions are conducted in rubles and yuan. Since the West imposed sanctions on Russia following the war in Ukraine, the two countries have accelerated the use of local currencies in trade.

Lavrov’s comments came as the ruble rose against major currencies on December 28, hitting a two-week high against the euro and the dollar, according to data from the Moscow Stock Exchange. It is now worth 89.7 rubles per dollar.

The ruble has lost more than a third of its value against the dollar this year, as the war in Ukraine has hit Russia's export-oriented economy .

However, after falling below 100 rubles to the dollar in early October, the ruble has strengthened significantly. The reason is that Russian authorities re-imposed capital controls that had been implemented at the beginning of the war, such as forcing dozens of exporters to convert foreign currency revenues into rubles, to prevent the currency from falling further.

Ha Thu (according to RT)

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