Putin warns of Dollar’s decline amid sanctions, advocates for Russian-Chinese solutions
financialexpress.comOn Friday, President Vladimir Putin expressed concern that the U.S. sanctions policy was eroding confidence in the dollar. He highlighted that Russia and China were exploring solutions to prevent the imposition of measures against Chinese banks from disrupting their growing trade.
The United States has imposed multiple waves of Ukraine-related sanctions on Russia and has threatened secondary sanctions on foreign banks facilitating transactions with Moscow. Consequently, some Chinese banks have scaled back their dealings with Russian companies.
During a televised appearance in China, Putin asserted that such sanctions lacked legitimacy unless endorsed by the U.N. Security Council. He also criticized them as counterproductive for the United States, labeling them as a demonstration of its “stupidity.”
“They are completely devoid of common sense,” Putin told reporters.
He commented that the United States was “sawing the branch they are sitting on” by undermining confidence in the dollar and leading countries to diminish the portion of dollars in their reserves.
Putin suggested that a solution to the challenges in Russian-Chinese payment settlements was feasible but refrained from specifying its details.
Putin’s presence in China signifies a strategic visit aimed at strengthening the bond between the two formidable rivals of the United States.
With inputs from Reuters.
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