Russia has expanded its list of countries eligible for currency trading within its financial system, adding Nigeria, Tunisia, and Ethiopia to the roster. This move increases the total number of nations permitted to engage in currency trading in Moscow to 40, with recent additions also including Laos and Mexico.
According to a statement from Russian officials, the decision aligns with the Kremlin’s broader strategy to deepen economic ties with friendly and neutral countries while reducing reliance on Western financial systems.
“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 read.
Why Russia is Expanding Its Currency Trading Network
Russia’s decision to add these African and non-African nations stems from a need to improve liquidity in its financial system. Previously, only Russian individuals could engage in domestic foreign currency trading. However, their limited capacity to provide enough liquidity in national currencies restricted transaction volumes and contributed to fluctuations in the ruble’s exchange rate.
African Nations Strengthening Ties with Russia
This latest move follows a growing trend of economic and diplomatic engagements between Russia and African countries. Algeria, Egypt, Morocco, and South Africa were among the first African nations included when Russia initially approved the currency trading list in September 2023. Now, with the addition of Nigeria, Tunisia, and Ethiopia, Russia’s economic footprint in Africa continues to grow.
The expansion of Russia’s currency trading network is also linked to the broader efforts of the BRICS alliance—of which Russia is a major member—to move toward de-dollarization. The bloc has been actively advocating for an international trade system that reduces dependence on the U.S. dollar, a move that has drawn sharp criticism from Washington.
Geopolitical Implications: U.S. Response and Potential Fallout
Former U.S. President Donald Trump, who has returned to office, has reiterated his threats to impose 100% tariffs on BRICS countries should they push forward with an alternative global currency for trade. This stance signals potential economic confrontations between BRICS and the West, especially as Russia and China continue efforts to strengthen non-dollar-based trade mechanisms.
The Kremlin has responded by cautioning against any U.S. attempts to force nations into continued reliance on the dollar, warning that such actions could have unintended consequences.
What This Means for Nigeria and Other Newly Added Countries
For Nigeria, Tunisia, and Ethiopia, access to Russia’s currency market could present new trade and investment opportunities. It may enable smoother financial transactions with Russian businesses and reduce the costs associated with dollar-denominated exchanges. However, it also places these countries within a complex geopolitical landscape, as they navigate relationships between Western economies and emerging alliances like BRICS.
As Russia continues to reshape its economic strategy in response to Western sanctions, its engagement with African economies is expected to deepen further. Whether this will lead to long-term benefits for the newly included African nations remains to be seen.
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