Akinwande Soji-Ojo
The Russian government has added Nigeria, Tunisia, and Ethiopia, on the list of countries eligible for currency trading in the country.
A statement by Kremlin on Monday revealed that countries now allowed to trade currencies in Moscow has increased to 40.
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“The number of friendly and neutral countries whose credit institutions and brokers will be allowed to trade on the Russian foreign exchange market and the derivatives market has increased to 40,” the statement said.
Countries outside Africa, such as Laos and Mexico were also added.
“The order has been signed. Representatives from Argentina, Cambodia, Laos, Mexico, Nigeria, Tunisia, and Ethiopia will now be able to engage in currency trading,” it added.
The Russian government stated that the directive would assist in fulfilling the demand of the Russian economy for payments in its currency and enhance the effectiveness of the system for the direct conversion of the national currencies of friendly and neutral governments.
Two years ago, only 30 countries were on this list.
African countries such as Algeria, Egypt, Morocco, and South Africa were initially on the original list, which was approved by the Russian government in September 2023.
Prior to these developments, only people from Russia could engage in domestic foreign currency trading.
However, their limited capacity to provide enough liquidity in national currencies restrained transaction volumes and skewed the ruble’s exchange rate.
According to sputniknews, this was fueled by an increase in demand for other currencies as a result of Western sanctions.
These sanctions may be intensified following United States President, Donald Trump’s threats to impose 100% tariffs on BRICS countries, should they go ahead to introduce an alternative currency for international trade.
The BRICS nations, which Russia is one of its founding members, has been actively pushing for de-dollarisation, aiming to create a more centralised trading system that is less reliant on the dollar.
This has caught the attention of Trump, who has maintained his threat to impose 100% tariffs on BRICS countries, should they go through with it.
In response, the Kremlin cautioned that any US attempt to coerce countries to use the dollar would result in unexpected repercussions.
© 2023 Newspeak & Associates
© 2023 Newspeak & Associates
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Russia adds Nigeria, two others to currency trading list – Newspeakonline
