Moscow – The United States is self-destructing the importance of the US dollar as a reserve currency by using it as a sanction instrument, claimed Russian President Vladimir Putin. He also accused that by printing extra dollars, the US is escalating the debt burden and stimulating inflation in the country. Last month, Elvira Nabiullina, Governor of the Bank of Russia, drew attention to international markets and Russia’s declined inclination for using the US dollar.
‘It seems to me that the United States is making a very big mistake by using the dollar as a sanctions instrument. And they do this because they prevent payments in dollars for sanctioned products. So, we have no other choice; we are simply forced to switch to settlements in other currencies. This is the first thing. Russia is still using the dollar as a mode of payment for oil. But if the policy of the American authorities continues, then we will not have to do anything; the United States will itself undermine confidence in the dollar,’ warned Putin.
The Russian President pointed out that several US allies are reducing their dollar reserves and scales of transactions. He said that the reason behind this was not only the sanctions but also the US’ excessive printing of the dollar, the growing debt burden and activities devaluating the dollar. Putin also said that inflation in the US is rising at an unprecedented scale due to the US systems policies.
Presenting the issue of rising debt on the US, Putin claimed that many are questioning what the US will do with the enormous debt. He gave indications that the US government may act differently to devalue the dollar. He further added that the US leadership has been internationally reducing the dollar’s influence as a reserve currency to gain a local political advantage. This is detrimental to the US’ strategic and economic interests. ‘They are indeed sawing off the branch they are sitting on,’ Putin retorted.
A few years ago, Putin had begun the process of ‘de-dollarisation’. He has taken aggressive steps to reduce the use of the US dollar. Russia’s fuel companies are trading in Rubles and other local currencies with their major partner countries. This includes countries like China, European countries as well as Iran. Concurrently, the US dollar holdings raised in the National Wealth Fund of the Russian government’s reserves have been cut to zero.
Russia’s Foreign Exchange Reserves and Gold Reserves hit a record high
Moscow – Russia’s Foreign Exchange (FX) Reserves reaching over $618 billion is a historic event, the Russian parliament said. According to a report by the Russian parliament, Russia’s FX reserves have increased to $235 billion in the last six and a half years. The parliament specified that Russia has leapt to the fifth position; in the list of the countries with the highest number of foreign exchange reserves. The report said that Russia has also increased its gold share in the reserves to more than 23%. As per the information of Russia’s central bank, the country has 2,295 tonnes of gold reserves.
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