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RUSSIA EXPANDS CURRENCY TRADING LIST TO INCLUDE NIGERIA, TUNISIA & ETHIOPIA

RUSSIA EXPANDS CURRENCY TRADING LIST TO INCLUDE NIGERIA, TUNISIA & ETHIOPIA
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Faith Nyasuguta

Russia has expanded its list of African nations whose banks can now trade currencies within the country, adding Nigeria, Tunisia, and Ethiopia to the list

The move, confirmed by Russian officials, increases the total number of countries eligible for currency trading in Russia to 40. This list expansion includes both African and non-African nations, with countries like Laos and Mexico also recently joining.

An official statement from the Russian government explained that the expansion aims to fulfill Russia’s economic demands for payments in its currency and enhance the efficiency of the system for direct currency conversions among friendly and neutral nations. The inclusion of Nigeria, Tunisia, and Ethiopia signifies a growing relationship between Russia and African countries in the financial sphere.

The list of eligible nations now includes major African economies such as Algeria, Egypt, Morocco, and South Africa, which were part of the original list approved by the Russian government in September 2023. The move marks a significant shift in Russia’s financial strategy, especially as it seeks to reduce its reliance on the US dollar.

Russia’s currency /BIA/

This expansion of Russia’s trading partners comes at a time when the country is under Western sanctions, which have led to an increase in demand for alternative currencies. In recent years, 

Russia has been working to establish a more diversified trading system that reduces its dependence on the dollar, a goal that aligns with efforts by the BRICS countries, including Russia, to push for de-dollarization. This initiative aims to create a more centralized international trading system, less susceptible to the influence of the dollar.

The expansion of Russia’s foreign exchange market to include more countries, including several from Africa, signals Russia’s strategy to increase its influence in the global financial arena. It reflects the Kremlin’s efforts to maintain financial stability amidst growing pressure from Western sanctions, particularly those imposed following Russia’s military actions.

Russian President Vladimir Putin /Business Standard/

Furthermore, the geopolitical tension surrounding these moves has drawn attention from international leaders, including US President Donald Trump, who has warned of potential tariffs on BRICS nations if they continue to challenge the dollar’s dominance in global trade. In response, Russia has cautioned that any attempts to coerce countries into using the dollar could have unexpected consequences for the US.

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Faith Nyasuguta

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