Les Echos: Russia paving the way towards independence from the dollar

Les Echos: Россия прокладывает путь к независимости от доллара

In 2020, the national welfare Fund of Russia intends to reduce the amount of dollar-denominated investments in favor of other currencies, for example, yuan, reports Les Echos. As says the publication, this decision of the Russian authorities has prompted tensions with the United States and the desire to evade us sanctions. Furthermore, additional investments of Moscow in the currency of the BRIC countries will help to strengthen trade relations between them and to create a counterweight to American hegemony, the newspaper said.In 2020, the national welfare Fund of Russia intends to reduce the amount of dollar-denominated investments in favor of other currencies, for example, yuan, reports Les Echos, citing a statement by the Deputy Minister of Finance Vladimir Kolycheva. In his words, “a key factor” that prompted the Agency to this decision, were “geopolitical risks”.Thus, the Russian Finance Ministry intends to follow the example of the Central Bank, began to sell U.S. government bonds in 2018, the newspaper notes. While to date, dollar assets account for over one third of all foreign exchange reserves of the Fund.As explained by Les Echos, Russia began the process of “de-dollarization” of its economy and financial system after the emergence of tension in relations with the United States in 2014 to circumvent U.S. sanctions. “For Moscow it is a way to answer and speak out against American hegemony” — the newspaper said.Moscow has signed agreements on currency swaps with countries including in the “sensitive relations” with the United States — such as Iran, China and Turkey. In addition, the country increased the number of reserves in the currencies of the BRIC countries, thereby promoting trade among the States of the block, the total amount which, according to the remark of Vladimir Putin in 2018 amounted to $125 billion among other things, the sale of dollars will allow Russia to raise and stabilize the ruble, which fell in 2018 is 17%. Since the beginning of this year, the Russian currency resumed its growth, and its rate relative to the U.S. rose by 7.6%. Today the price Yes, $1 is 64 rubles against $ 69 in January. Stabilization of currencies, in particular, will help to increase the share of payments for Russian energy exports in rubles.”We have a very good currency, it is stable. Why not use it for global transactions?” declared in October in interview to the newspaper the Financial Times, the Minister of economic development of Russia Maxim Oreshkin.

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