There are some problems around the world, especially with cryptocurrency exchanges, both in terms of security and speed of payments. This situation is making itself felt to some extent, especially in countries like Iran and Russia, which are in direct conflict with the US. For this reason, the dollar remains one of the world’s accepted reserve currencies, although many countries prefer to use their own currencies in trade.
A New Move Will Come From Moscow
According to the Russian president, Moscow will work with its friends to create a secure system for international payments. In the medium and long term, the U.S. dollar will lose its position as the world reserve currency.
Vladimir Putin believes that the U.S. dollar and other Western currencies will lose their supremacy in international trade. In a speech to the Federal Assembly, Putin said Russia will work with its allies to create a secure global payments system independent of the U.S. dollar and the euro.
Putin believes that the current practices of Western countries are causing the dollar and the euro to lose their position as global reserve currencies.
Russia Ruble Transactions Continue To Increase
Putin stressed in December that the share of ruble transactions in Russia’s international trade has doubled since the beginning of 2022 and now accounts for one-third of all Russian payments. Putin expects local currencies to continue replacing the U.S. dollar and the euro in Russia’s international trade.
The process of de-dollarizing the Russian economy began in 2014, when the West imposed the first sanctions on Moscow over its annexation of the former Ukrainian territory of Crimea. This process has accelerated since the start of the military operation in Ukraine, when the U.S. and its allies froze more than $300 billion in Russian foreign exchange reserves and other assets.
However, it is too early to make a definitive statement on this issue. This is because, although Russia continues to take a negative stance toward the dollar, it must conduct most of its trade in dollars and similar reserve currencies. This leads to other questions arising spontaneously. Although no clear statement has yet been made on the subject, the development of trade activities between countries based on gold or a more robust medium of exchange is also on the agenda….
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