Russia’s desire to ditch the dollar could be a protest against American hegemony. This opinion was expressed in the newspaper “Huangqiu Shibao” by a researcher at the Institute of Russia, Eastern Europe and Central Asia of the Chinese Academy of Social Sciences Chen Yijun, they write RIA News…
The expert believes that de-dollarization will not greatly affect Russia, since the United States, unlike China and Europe, is not Moscow’s main trading partner. At the same time, the Russian currency, according to him, is recognized as a stable means of payment.
For Washington, the action of the Russian authorities will become a kind of humiliation, since Moscow’s demarche will put Washington in an “awkward position in front of its allies.”
Earlier, Finance Minister Anton Siluanov announced the plans of the National Wealth Fund (NWF) to completely get rid of the American currency. Instead of the dollar, the share of the euro and the yuan will grow, and gold will also appear. Later, First Deputy Prime Minister of Russia Andrei Belousov explained that the withdrawal of the dollar from the structure of the NWF is associated with the threat of US sanctions and is fully justified.
Kremlin spokesman Dmitry Peskov, in turn, called de-dollarization a permanent process. He noted that one of the reasons for this move was the concern of many countries about the reliability of the main reserve currency.
On June 28, the Central Bank of Russia confirmed that the American currency will remain part of Russian reserves. The head of the regulator Elvira Nabiullina noted that the Central Bank takes into account the emerging geopolitical risks.
Washington said they are not afraid of plans by Russia and China to abandon the US dollar. The head of the US Federal Reserve System Jerome Powell said, speaking to congressmen, that the dollar is a world-class reserve currency, and “there is no other that could compete with it.”
According to the head of the American regulator, the advantage of the dollar is provided by the working democratic institutions of the USA, open markets and low inflation.
The abandonment of the dollar and the reform of the NWF could lead to a sharp demand for gold. Experts note that it is impossible to increase such a significant amount of precious metal in a month, even considering that Russia ranks fifth in the world in terms of gold reserves. At the same time, over the past 15 years, gold has risen in price almost six times.
Private investors were advised to build a portfolio that should contain assets denominated in US dollars, euros, rubles, possibly in yen and the currencies of Russia’s major trading partners. Freedom Finance analyst Yevgeny Mironyuk pointed out that the ratio of the volume of ruble assets to the volume of dollar assets should depend on the currency in which the portfolio holder is going to spend money in the future.
However, some experts were dubious about the idea of completely abandoning the dollar. So, the head of the Analytical Credit Rating Agency Mikhail Sukhov recalled that one of the main export goods of Russia – oil – is quoted precisely in dollars. Preconditions for the abandonment of the US dollar as a currency for gold and foreign exchange reserves will be created only if, for some reason, oil quotes will be carried out in other currencies or Russian exports will significantly change their structure. At the same time, he considered the very idea of de-dollarization to be relevant, believing that this process will inevitably have an effect in favor of reducing the dependence of countries participating in international trade on the American currency.