Ethiopian Ambassador to Russia Genet Teshome Jirru stressed that Russia and Ethiopia have just taken a new step by starting to trade in their national currencies. Although the transition is still in its early stages, both countries are committed to expanding this activity.
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| Ethiopia and Russia trading in local currencies could become a model for other BRICS countries, paving the way for a global trading system less dependent on the US dollar. (Source: iStock) |
Specifically, recently, Ethiopia was included in the list of three African countries where Russia allows banks to conduct currency transactions in Moscow, along with Nigeria and Tunisia.
The Russian government asserted that the decision would help meet the demand for payments in the country's national currency, while improving the efficiency of the direct conversion system between currencies of friendly and neutral countries.
Ambassador Genet Teshome Jirru stressed that conducting transactions in local currencies offers financial advantages, regardless of external factors such as international sanctions.
“Even without sanctions, it is always beneficial to trade in local currencies. This reduces transaction costs and avoids the risk of exchange rate fluctuations,” the ambassador said.
Sharing more about the benefits, the Ambassador pointed out that dependence on foreign currency causes uncertainty and can push up commodity prices due to speculative trading.
"Abandoning the US dollar will not only help Russia and Ethiopia - two countries in the world's leading emerging economies (BRICS) - reduce their dependence on the Western financial system but also protect the two economies from unstable geopolitical factors," Mr. Genet Teshome Jirru emphasized.
The two countries trading in local currencies could serve as a model for other BRICS countries, paving the way for a global trading system less dependent on the US dollar.
Indonesia and India are also moving towards abandoning the US dollar in cross-border transactions.
Bank Indonesia and the Reserve Bank of India recently signed a memorandum of understanding on local currency settlements. The agreement allows exporters and importers to settle payments in rupiah or rupees, eliminating the need to use the US dollar as an intermediary.
Source: https://baoquocte.vn/them-hai-nuoc-brics-quay-lung-voi-usd-hop-tac-su-dung-noi-te-304107.html
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