Russia, Indonesia work on using local currencies for trade

Russia and Indonesia are in discussions to utilize their local currencies for trade, as Russia continues to face challenges due to its exclusion from the SWIFT international payment system.

Russian Ambassador to Indonesia Sergei Tolchenov has confirmed that financial institutions in both countries are exploring alternatives to American dollars for cross-border transactions, News.Az reports, citing The Jakarta Post.

“Russia’s exemption from the SWIFT has made it very difficult for us to use financial settlements in American dollars. That’s why we should find appropriate ways to use national currencies. This is something that the Russian and Indonesian financial institutions are working on. So yes, we are already discussing the [local currency] systems,” the diplomat said.

“The most important thing is finding solutions that are suitable and mutually beneficial,” Tolchenov noted.

The diplomat wants the private sector to partake in the discussions besides the central banks and finance ministers.

“Because businesses would want to have independent and sustainable channels of financial settlements,” Tolchenov added.

The Russian diplomat also talked of BRICS’ de-dollarization agenda. According to Tolchenov, the alliance is currently focusing on promoting the use of national currencies rather than creating an entirely new currency from scratch. “The fact that Indonesia is now a BRICS member will hopefully help us resolve the payment issues,” he said.

News.Az