Russia has broadened its list of African countries eligible for currency trading, adding Nigeria, Tunisia, and Ethiopia. This expansion raises the total number of nations permitted to trade currencies in Russia to 40. The move aligns with Russia’s strategy to strengthen its economy amidst increasing demand for its ruble, especially due to Western sanctions.
The recent changes allow for direct conversion of national currencies from countries considered neutral or friendly to Russia, addressing the need for ruble payments in international transactions. This expansion is expected to improve market liquidity and stabilize the ruble’s exchange rate, which has been challenged by geopolitical tensions.
In September 2023, Russia had already included several African countries, including Algeria, Egypt, Morocco, and South Africa, in its currency trading system. This initiative is part of broader global discussions about de-dollarization, with Russia and other BRICS countries advocating for alternatives to the U.S. dollar in global trade.
However, the U.S. has warned of severe economic consequences if these nations proceed with de-dollarization plans, including the imposition of tariffs on BRICS countries, potentially disrupting global trade dynamics.