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Putin’s visit to South Africa raises concerns of potential sanctions
As South Africa prepares to host the BRICS summit in August, many think Putin’s visit is a red flag for sanctions, demanding his arrest under the International Criminal Court (ICC) warrant. However, according to The Citizen, the country’s response has been to grant Putin diplomatic immunity. This decision causes concern within the Western world and invites international sanctions against the country, a scenario that the South African Reserve Bank (Sarb) has identified as a significant economic threat.
While some may think that China, as our current major trading partner, can compensate for any backlash from the West, the reality is that financial sanctions could have dire consequences for us. Most international trade is conducted in US dollars or euros, and exclusion from major payment systems could prove catastrophic. Even with our growing alignment with Russia and the potential pariah status in the eyes of Western nations, being excluded from these monetary mechanisms would be a severe blow to South Africa.
Sarb’s concerns about the threat of sanctions are serious. The implications could lead to a rapid deterioration of our fragile situation, causing the rand’s value to plummet, resembling the nearly worthless Zimbabwean dollar. Unfortunately, however, it seems that for the ruling ANC, loyalty takes precedence over the welfare of the people. Unfortunately, this prioritisation is unsurprising, as ordinary citizens rarely find themselves on the list of ANC’s top concerns.
Also read:
South Africa’s shocking U-turn: “We’re staying in ICC!” – Was it all just a communication error?
Picture: Twitter / PresidencyZA
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