World Countries Planning to Bring American Greenback to Its Knees
TEHRAN (Tasnim) – The world countries have reached a conclusion that the use of dollar in the global trades has undermined their economies to a great extent while in return has helped boost the economy of the United States.
Indonesia is following the lead of the BRICS group (including Brazil, Russia, India, China and South Africa) in its policy of shifting away from the US dollar in trade and financial transactions, according to the country’s central bank.
Jakarta has introduced transactions in the local currency to settle cross-border trades, the portal SINDOnews has reported, citing Bank of Indonesia Governor Perry Warjiyo.
Indonesia has already implemented the practice with a number of countries, such as Thailand, Malaysia, China, and Japan, he added. It also plans to sign a cooperation agreement with South Korea regarding local currency trading in early May.
Warjiyo’s statement comes as the BRICS economic bloc – comprising Brazil, Russia, India, China, and South Africa – claims to be working on establishing a joint payment network to cut reliance on the Western financial system, and on the dollar in particular. The member countries have been increasing the use of local currencies in mutual trade and also working on establishing a new reserve currency.
China’s attempts to ditch the dollar in international trade have intensified against the backdrop of the sweeping sanctions introduced by Western nations against Russia, a major global energy producer and exporter. Indian policymakers have also taken several steps towards shifting away from the greenback to rubles and rupees in mutual trade with Moscow, RT reported.
