The US dollar will not disappear from the international market any time soon, but it is absolutely essential for Moscow to continue its long-term policy of ‘de-dollarization’ to reduce Russia’s dependence on the currency.
That’s according to Senator Valentina Matvienko, the chairperson of the country’s Federation Council, who voiced her support for Russia’s movement away from the greenback.
“The dollar, of course, will not disappear anywhere. It is and will be in circulation. But, to reduce the dependence of our economy on any one currency, of course, it is necessary,” she said on Tuesday.
In particular, Matvienko noted that Russian foreign exchange reserves have become less dependent on the dollar, in what she dubbed as an “open and obvious” de-dollarization policy. The Central Bank has also continued its strategy of getting rid of US Treasury bonds, which began in May 2017.
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“The process [of de-dollarization] is going on. It may seem slow to some, but it is progressing,” Matvienko noted. “The reduction of dependence on one financial center, though important, is an absolutely correct policy, and the Russian Parliament supports it in every possible way.”
Last week, Russian Deputy Foreign Minister Sergey Ryabkov revealed his belief that Moscow must quickly cut its reliance on American financial systems, including usage of the US dollar, with new sanctions from Washington seemingly right around the corner.
“We need to barricade ourselves against the US financial and economic system to eliminate dependence on this toxic source of permanent hostile actions,” he said. “We need to cut back the role of the dollar in all operations.”
Last year, first-quarter trade figures revealed that the share of the dollar in trade between Russia and China fell below 50 percent for the first time. In 2016, this figure was over 90 percent.
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