December 4, 2021

Copy-paste | Dollar, good bye! Russia moves away from dollars

Russia has launched the process of de-dollarization and is actively moving away from the use of American currency. But where is she is coming?

The processes of dedollarization are happening now onat the global level, however, Russia has historically been America’s main antagonist, so the whole world is watching with interest the Kremlin’s attempts to reduce the dependence of its economy on the US dollar.

Worldwide governments of different countries have takencourse to overcome the hegemony of the "king of the dollar" and reduce its dollar reserves. According to the IMF, the total share of the US currency in world reserves fell to a 6-year low of 61.63%. The Central Bank of Russia against this background acts more decisively. Over the past year, he has reduced the share of the dollar in his reserves by almost half, to 23%. Last week, Russia's sovereign wealth fund announced similar plans for 2020. He also plans to redraw the current reserve structure in favor of other currencies, including the yuan and the euro.

Friendship vs Bucks

It’s no secret that dedollarization is not a processeconomic, but geopolitical. So, for Russia it has become especially relevant since 2014 - after the resonant annexation of Crimea and the subsequent sanctions.

Accordingly, the main allies of Moscow becameStates also in difficult relations with the United States, such as China, Iran, or Turkey. The Central Bank of the Russian Federation has already concluded relevant agreements on trade in national currencies with these countries. Such bilateral calculations are planned to be used, in particular, in the supply of oil and gas.

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