DE-DOLLARIZATION DU JOUR: RUSSIA BACKS BRICS ALTERNATIVE TO SWIFT | WHAT REALLY HAPPENED

DE-DOLLARIZATION DU JOUR: RUSSIA BACKS BRICS ALTERNATIVE TO SWIFT

Russia is ready to consider the creation of a currency union with other members of the Eurasian Economic Union (EEU), Russian Prime Minister Dmitry Medvedev said Thursday.

Now, Russia is taking de-dollarization a step further by suggesting that a BRICS alternative to SWIFT may be in the cards.

This comes as Russia (which, incidentally, is the second heaviest SWIFT user) is set to convene a BRICS summit in Ulfa on July 8-9 where the $100 billion BRICS bank will officially be launched along with a $100 billion currency reserve

"In this [EEU] format it would be possible to consider the possibility and conditions of eventually creating a monetary union,” Medvedev said.

The prime minister is currently in Kazakhstan for a session of the Eurasian Intergovernmental Council.

The EEU, which officially came into force January 1, 2015, comprises Armenia, Belarus, Kazakhstan and Russia. The bloc seeks to achieve greater economic integration, including the free flow of goods, services, capital and labor across its member states.
With that, we have triple-dose of de-dollarization, as Russia moves to undercut a critical financial communications link by creating an alternative system backed by the world's rising EM powerhouses who are set to officially launch their own development bank when they convene in July. At the same time, Moscow will consider cementing its economic ties with regional allies via the establishment of a currency bloc.


Paging King dollar: your grip on the throne grows weak.

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