Russia faces sweeping sanctions over its full-scale invasion of Ukraine and has been locked out of the US dollar-dominated global financial system, including the widely used SWIFT financial messaging system, making payments and transactions challenging.
The Kazan Declaration, issued Wednesday, did not mention global dollar dominance — but it highlighted alternatives.
AdvertisementChina — even though it's in a prolonged slowdown — is expected to be the top contributor, accounting for about one-fifth of global growth over the five years.
AdvertisementHowever, BRICS economies have a smaller global presence in global financial flows, limiting the impact of de-dollarization, the ING analysts added.
Other issues include what countries would use the alternative currencies for and if the West would sanction such alternative systems, he said.
Persons:
Vladimir Putin, Putin, —, he's, Alexander Kolyandr, Tom Keatinge
Organizations:
Service, ING, United, United Arab Emirates, Bloomberg, International Monetary, Center for, Centre for Finance, Security, Royal United Services Institute
Locations:
BRICS, Russian, Kazan, Russia, Ukraine, cryptocurrencies, Brazil, India, China, South Africa, Iran, Egypt, Ethiopia, United Arab, USA