Venezuelan President Nicolas Maduro has urged the world to move away from the U.S. dollar, citing the currency’s “indiscriminate use and abuse” as a tool for economic warfare. In a message to the leaders of the BRICS nations—Brazil, Russia, India, China, and South Africa—Maduro emphasized the need for alternative settlement systems that employ national currencies.
The push for a de-dollarized world
Maduro’s call for de-dollarization comes at a time when Venezuela has been grappling with economic sanctions that have severely impacted its state-owned oil company, PDVSA, and restricted U.S. nationals from financing or purchasing the Petro, Venezuela’s cryptocurrency asset. The Venezuelan leader argued that the current dollar-dominated system has adversely affected at least 28% of the world’s population across 30 nations. “The damage to our economies and development models is undeniable,” Maduro stated, adding that these measures have also infringed upon human rights in the affected countries.
New financial tools for emerging economies
In his message to the BRICS leaders, Maduro proposed the creation of a new financial system that would allow member countries and their allies to settle transactions using “new physical and digital tools.” He suggested a basket of currencies as one such tool and emphasized the need for new sources of financing to aid the recovery and growth of emerging economies. Maduro also offered Venezuela’s experience in mitigating the effects of sanctions as a resource for the BRICS bloc to “dismantle the financial and commercial domination system.”
Venezuela had submitted an official application to join the BRICS group on August 1 but was not among the six new nations invited to be part of the group starting next year. Despite this setback, Maduro’s call for a de-dollarized global economy resonates with ongoing discussions about the need for financial diversification, especially among countries that have been targets of economic sanctions.
Maduro’s call for de-dollarization adds another layer to the complex dialogue surrounding global financial systems. While Venezuela was not selected to join the BRICS bloc, the country’s experience in countering the effects of sanctions could serve as a case study for other nations looking to navigate the challenges of a dollar-dominated world. With the BRICS nations collectively representing a significant portion of the global economy, the push for alternative financial systems could gain momentum, potentially leading to a more diversified and resilient global economic structure.