Russian President Vladimir Putin charged against the U.S. actions seeking to block Russian payments to China and other countries. During a two-day trip to China, the Russian leader emphasized that this strategy was “really stupid and a huge mistake,” considering that these actions affected the status of the U.S. dollar as a reserve currency.
'Really Stupid and a Huge Mistake:' Putin Blasts US Actions Blocking Payments to China; Exporters Turn to Small Banks and Crypto
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Russian President Vladimir Putin: U.S. Strategy for Blocking Payments to China Is ‘Really Stupid and a Huge Mistake’
Vladimir Putin, President of Russia, has reacted to the actions that seek to block the payments of Russian Federation’s companies to China. During a two-day trip to China, where Putin strengthened his ties with President Xi Jinping, Putin complained about the issue, stating that it was a measure that harmed U.S. interests worldwide.
According to TASS, Putin declared:
This is really stupid and a huge mistake on the part of the American political elites, because they cause enormous damage to themselves.
Furthermore, Putin added that these sanctions “undermine confidence in the dollar and are gradually curtailing the status of the dollar as a world settlement and reserve currency,” powering the necessity for new payment options based on non-U.S. controlled currencies.
Putin reinforced that alternatives were possible to the U.S. dollar and that they were working at implementing them. However, he stated that all proposed solutions would have to be supported at a state level.
Trade relations between Russia and China have thrived since the Western world enacted sanctions against the former nation due to its participation in the conflict against Ukraine. Nonetheless, now Chinese banks have begun to block payments from Russian companies due to the risk of getting hit by secondary sanctions for powering the Russian war effort.
Due to this situation, Chinese exporters have reportedly turned to small banks and cryptocurrency to complete their payments and keep trading, even when this payment method has been banned in mainland China.
Recently, Iranian Ambassador to Russia Kazem Jalali reported that there has been joint work between Russia and Iran on creating a single BRICS bloc currency.
What do you think about President Vladimir Putin’s statements on U.S. actions? Tell us in the comments section below.
