Russia Explores National Currency Usage in Trade with ASEAN Members
The Foreign Minister of Russia, Sergey Lavrov is exploring the possibility of using national currencies in trade settlements with the ten Southeast Asian Nations (ASEAN). As countries worldwide increasingly aim to reduce their reliance on the US dollar, Russia and these ASEAN members are exploring alternative payment systems to enhance their trade relationships.
Lavrov Supports National Currencies for Trade Settlements
In a recent interview with Indonesian newspaper Kompas, Russian Foreign Minister Sergey Lavrov disclosed Russia's ongoing discussions with members of the Association of Southeast Asian Nations (ASEAN), regarding the use of national currencies for trade settlements. ASEAN members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
Lavrov expressed that Russia views the current international situation not as a "new cold war" but as an opportunity to foster a multipolar world order. He highlighted the West's efforts, led by the US, to impede and reverse this process, emphasizing their pursuit of maintaining hegemony and advancing neo-colonial agendas.
Lavrov stated, “Their goal is not to strengthen global security and engage in mutual development, but only to maintain their hegemony in world affairs and further carry out neo-colonial agendas. Nothing has changed; as usual, they solve their problems at the expense of others."
The Russian Foreign Minister further explained that the Western-centric approach, which disregards the interests of countries in the Global South and East, drives the exploration of alternative cooperation formats across various fields. The confiscation of Russia's foreign reserves in Western jurisdictions has led to the global realization that tangible assets stored in these regions are vulnerable to seizure.
Lavrov added:
"Not only limited to Russia, several other countries are consistently reducing their dependence on the US dollar, starting to switch to the use of alternative payment and calculation systems through national currencies."
Increasing Effectiveness of Interstate Associations
Lavrov emphasized the increasing effectiveness of interstate associations that exclude Western countries, citing examples such as the BRICS and the Shanghai Cooperation Organization (SCO). These platforms provide opportunities for constructive cooperation and mutual development among participating nations.
The Russian foreign minister said his country maintains a strategic partnership with ASEAN, with a relationship spanning over three decades.
“We are giving special attention to the development of a strategic partnership with the association,” he stressed. “We have a history of relationships for more than three decades,” he said.
Lavrov plans to attend an upcoming ASEAN ministerial-level meeting in Jakarta, underscoring Russia's dedication to strengthening this partnership. The foreign minister also highlighted Russia’s “constructive cooperation in the UN and other multilateral platforms on various urgent international issues,” adding that Russia is working closely with Indonesia this year as the chair of ASEAN.
Focus on Reinforcing Existing Architecture Surrounding ASEAN
The focus of Russia's efforts lies in reinforcing the existing architecture surrounding ASEAN to promote stability and cooperation within the Asia-Pacific region. As part of this endeavor, consultations on the use of national currencies in mutual settlements will be initiated to address practical cooperation interests between Russia and ASEAN countries, including Indonesia.
Additionally, the ten ASEAN member states have intensified their de-dollarization initiatives. In May, they collectively agreed to encourage the use of local currencies for economic and financial transactions within the ASEAN region.
Indonesia's central bank governor stated that the country is actively shifting away from the US dollar, following the de-dollarization lead set by the BRICS. Notably, Indonesia recently introduced a new national payment system to bolster its de-dollarization efforts and safeguard against potential geopolitical repercussions.
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