Opinion: Western countries’ policies lead to collapse of their economies and degradation of financial systems

These are not the best times for the US Dollar and Euro, since the world is actively looking for an alternative to them in such large international associations as BRICS, SCO, and EAEU. The process of formation of multipolarity is also gaining momentum. The most important issue in the BRICS countries (Brazil, Russia, India, China and South Africa) was the introduction of payments in national currencies between its members instead of the US Dollar. After all, 26 percent of the global GDP comes from these states (on January 1st, 2024, Saudi Arabia, the UAE, Iran, Ethiopia, Egypt and Argentina will also become full members of the association). As far as Belarus’s entry into this global structure is concerned, our country pins hopes on the speedy consideration of its application, which was officially submitted in May 2023. Doctor of Science in Physics and Mathematics Mikhail Kovalev, Professor of the Department of Analytical Economics and Econometrics of the Belarusian State University, told sb.by about how the process of dedollarisation is going on.

“There are two obstacles to moving away from the US Dollar in payments: the traditions of international pricing in US Dollars and the volatility of national currency exchange rates. Many countries are talking about switching to payments in national currencies, but this process is not going as quickly as we would like. In the age of Fintech, it is high time to create a currency settlement centre for the BRICS or China’s Belt and Road Initiative for real-time settlements in national currencies. In order to avoid the risks of fluctuations in national currencies, banks of the member countries of the association would have correspondent accounts in this centre, pay in national currencies and receive payment for goods in their own currency. In fact, business entities would know and deal only with the finances of their state. I’m convinced that sooner or later this will be done.”