Russian Foreign Minister Sergey Lavrov has backed former U.S. President Donald Trump’s remarks about the negative effects of U.S. sanctions on the dollar and the American economy. Lavrov agreed that sanctions imposed by the Biden administration have weakened the dollar’s global reserve status. He further noted a global shift towards dedollarization, led by nations like China and Russia, as many countries recognize the risks of dollar dependency in international trade.
Russian FM Backs Trump’s Warning on US Sanctions, Dollar’s Decline
Russian Foreign Minister Sergey Lavrov backed former U.S. President Donald Trump’s comments on Friday regarding the adverse effects of U.S. sanctions on the dollar and the American economy. Lavrov concurred with Trump’s assertion that the Biden administration’s sanctions have undermined the dollar’s role as a global reserve currency and weakened the U.S. economic standing.
“Donald Trump directly said that the sanctions imposed by the administration of Joe Biden, using the capabilities of the dollar as a global reserve currency, are destructive for the American economy. I agree with him,” Lavrov was quoted by Tass as saying. The Russian official added:
I agree with him … because the overwhelming majority of countries are already cautious about any operations in the global economy where they will depend on the dollar.
Lavrov pointed out that while many nations are beginning to realize the risks tied to dollar dependence, the currency remains a cornerstone for most global economies.
Trump has frequently cautioned that the Biden administration’s sanctions and heavy reliance on the dollar as a reserve currency are harming the U.S. economy. Speaking at a rally in Wisconsin earlier this month, he suggested that these policies could erode the dollar’s standing as a reserve currency. Trump also connected the issue to broader concerns, such as inflation and economic instability under Biden, claiming that U.S. policies were diminishing the country’s economic strength.
Amid mounting global concerns over U.S. sanctions and the dominance of the dollar, numerous nations, particularly those in the BRICS economic bloc, have advocated for dedollarization to lessen their dependence on the U.S. financial system. Countries such as China and Russia have been promoting trade in local currencies to reduce reliance on the dollar. This movement has gained momentum as Washington increasingly uses the dollar to enforce economic sanctions. Recent agreements within BRICS and other nations, including Indonesia, to settle trade in national currencies highlight a broader trend away from dollar-dominated global trade.
Lavrov emphasized that although dollar reliance remains pervasive, even in large economies like China and India, the risks associated with this dependence are being recognized. He noted a growing transition toward trade settlements in national currencies, stating:
The dollar is gradually being replaced by switching to settlements in national currencies.
