US making mistake using dollar as political weapon - Putin - Dollar Coll...

US making mistake using dollar as political weapon - Putin
Washington's use of payment systems for political purposes undermines the US dollar as a global currency, said Russian President Vladimir Putin at the BRICS Summit in South Africa.
"Regarding our American partners placing limitations, including those on dollar transactions, I believe is a big strategic mistake. By doing so, they are undermining the trust in the dollar as a reserve currency," said Putin.

Putin added that Russia has no intention of getting rid of the US dollar, as the currency is widely used in international trade and business.

"We will continue to use the US dollar unless the United States prevents us from doing so," said Putin in his closing address to BRICS leaders on Friday.

However, the Russian president emphasized the need for other currencies in global trade and the emergence of new reserve currencies like the ruble.

Putin explained Russia's liquidation of US Treasury holding and increasing of national gold reserves as a strategy to minimize risks.

The president’s comments came weeks after US Treasury data revealed that the Central Bank of Russia (CBR) had significantly reduced its holdings of US securities.

Russia launched a gradual sell-off of US sovereign debt in 2011, which has intensified over recent months, as Washington imposed numerous rounds of sanctions against Moscow.

So far, the Bank of Russia has slashed its holding by more than 90 percent, from over $150 billion to just $14.9 billion in May. The regulator explained the sell-off as part of Russia's strategy to diversify its reserves following a financial, economic, and geopolitical assessment.

Russia will light up Africa - Putin

The African continent is in huge need of energy investments, and Russia could become one of its key partners, according to President Vladimir Putin speaking at BRICS summit in Johannesburg.
"I would especially like to note that Russia is planning to step up its assistance in development of national energy in African states," said the Russian president during the BRICS-Africa Outreach panel on Friday.

The leaders of governments of BRICS member states (Brazil, Russia, India, China, and South Africa) were holding a panel dedicated to economics cooperation between the bloc and African countries. The rationale behind the BRICS Plus concept is to create a platform for greater interaction and partnerships amongst countries to win more power for emerging economies globally.

According to Putin, Russia is in talks with Angola, Mozambique and Gabon on implementing promising oil and gas projects. "In the field of nuclear energy, where Russia is the technological leader, we offer African partners to build an industry from scratch,” the Russian president said. These projects are crucial for Africa since about 600 million people on the continent live without electricity.

Energy is not the only sphere where Russia and Africa could cooperate, according to Putin. "Russian business shows interest in working with African partners in a wide range of areas, including agriculture, healthcare, the development of mass communications, geology and subsoil use," Putin said.

As examples, Putin mentioned Angola, where Russia’s Alrosa is interested in mining diamonds, a joint venture between Russia and Burundi on the production of lighting products for exports to East Africa, and agriculture projects in Senegal.