European Central Bank President Christine Lagarde made a case for defending the euro as Russia and China touted de-dollarisation efforts at the annual Brics summit.
At a discussion hosted by the Atlantic Council in Washington on Wednesday, the former IMF chief urged greater attention be paid to Beijing’s and Moscow’s advocacy of alternative currencies to the US dollar and euro.
“[China and Russia] will clearly attempt to push other currencies,” Lagarde said during the non-partisan think tank’s online event. “The renminbi is neck and neck with the euro on trade finance, so I think we all need to be attentive.”
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“We need to listen to our customers and our competitors to see what will serve them best, with the concern of defending the currency, establishing the sovereignty as it should be by legitimate means but clearly defending finance.”
Chinese President Xi Jinping and Russian President Vladimir Putin attend a reception during the Brics summit in Kazan, Russia, on Wednesday. Their countries are considered close partners in global affairs. Photo: Reuters alt=Chinese President Xi Jinping and Russian President Vladimir Putin attend a reception during the Brics summit in Kazan, Russia, on Wednesday. Their countries are considered close partners in global affairs. Photo: Reuters>
Lagarde’s comments came as the International Monetary Fund and World Bank held annual meetings this week and after Chinese President Xi Jinping at an annual Brics meeting in Kazan, Russia, called on the bloc to lead “urgent” financial reforms.
China and Russia have increasingly used Brics – a group of major emerging national economies comprising Brazil, Russia, India, China, South Africa and other countries – to promote its non-Western-led approach to policy.
The West in recent years has targeted China and Russia with more restrictive policies, including sanctions over their roles in the Ukraine war.
In a joint declaration on Wednesday, Brics said it was “deeply concerned” about the disruptive effect of “illegal sanctions” on the global economy. It stressed a need to reform the international financial architecture to make it “more inclusive and just”.
Xi’s call came as his Russian counterpart, Vladimir Putin, pushed for developing a payment system for Brics members, aiming to bypass the dollar-dominated Swift system that has excluded Russian banks since the Kremlin invaded Ukraine in 2022.
