BRICS: Russia calls on major oil producers to ditch the dollar

The escalation of currency conflicts has intensified amid Russia's struggle with economic sanctions imposed by the White House.

The Russian ruble weakened against the US dollar, falling to 91.45 on Tuesday. With the inflow of foreign investment declining, Russia is exploring various options to revive its economy. Among those options, President Vladimir Putin is considering retaliatory measures against America's foreign policy.

After his re-election, Putin advocated for the Middle East to reconsider accepting the US dollar in oil transactions. His remarks suggest he wants to retaliate against US policies that often cause economic turmoil in other countries. Putin stressed that if oil-producing countries in the Middle East abandon the US dollar, it could reduce the currency's importance globally.

However, the likelihood of the Middle East abandoning the US dollar in oil deals remains slim. The US dollar serves as the default currency for international trade payments, offering stability that local currencies lack. That is why Putin's vision of a de-dollarized world appears to be wishful thinking, as practical limitations remain.

In reality, Middle Eastern countries rely on the US dollar to sustain their economies. Many of their local currencies are pegged to the US dollar, enhancing their economic stability. Severing ties to the US dollar could disrupt their economies, leading to a drop in GDP and other economic indicators.