Russia is Going to Abandon the Dollar
OREANDA-NEWS The Russian government is preparing project to de-dollarize the country's economy. This is reported by The Bell, citing three sources who participated in the discussion of this plan. The discussion was attended by the Central Bank of Russia, VTB and other major banks, as well as exporters.
There is no question of any restrictive or prohibited measures in the developed project. Expert assures that "there will be no prohibition of payments in dollars". According to this information, the main emphasis will be placed on creating opportunities for settlements in national currencies. The plan also provides for the easing of currency controls and the liberalization of currency legislation.
The main goal pursued by the government is to transfer payments with the largest trading partners of Russia — China and the EU — in yuan and Euro, with the EAEU countries — in rubles, the interlocutors explain. To perform this task, it will be necessary to create convenient mechanisms that will allow businesses to carry out calculations in any currency without unnecessary losses, the sources explain. Among such mechanisms, they mention the creation of instruments at the level of Central banks that will give access to liquidity in the currency of another country, bypassing the need to buy it in foreign exchange markets.
According to The Bell, Prime Minister Dmitry Medvedev plans to approve the draft document "in one or two weeks".
In mid-July, VTB head Andrey Kostin, who consistently advocated the de-dollarization of the Russian economy, said during a meeting with President Vladimir Putin that the Bank's specialists had prepared proposals to increase the use of the ruble in international settlements. At the same time, he asked the head of state to support the policy of de-dollarization and instruct the government and the Central Bank to consider the proposals prepared by the Bank. Last Tuesday, the head of VTB said that the President" in General" supported his proposal for the de-dollarization of the Russian economy.
De-dollarization the government is discussing since President of the United States Donald Trump in August last year signed a law on sanctions (CAATSA).
In early September, Kostin during the Moscow financial forum identified de-dollarization as one of seven measures that will help counter Western sanctions