Top Stories

Russia is forced to leave dollar because of US actions: Putin

Written by The Frontier Post

MOSCOW (RIA Novosti): The value of the dollar as a reserve currency is undermined by the policy of the US authorities, for example, because of the sanctions, Russia is forced to switch to settlements in national currencies with its partners, and the tendency to move away from the dollar will continue if Washington does not change its policy, Russian President Vladimir Putin said.
“I did not say that the dollar has lost its significance as a reserve currency, as a universal world currency for settlements. No. I just said that the policy of the authorities, the political authorities of the United States, undermines the dollar, and, for example, pushes us out of the dollar zone.” – said Putin, speaking on Tuesday at the plenary session of the Russia Calling! forum.
He stressed that Russia does not want to leave settlements in dollars and the main Russian oil and gas companies are making settlements in the US currency. But, Putin added, the United States does not give Moscow the opportunity to settle in dollars with its partners in the military-industrial complex. “What do we do? We just have to leave (from the dollar – ed.). Sanctions are imposed on certain goods that are not related to the defense industry, and settlements in dollars are also difficult. It’s just that the American authorities themselves create problems. As a result, the volume of settlements dollars in the world decreased, this is connected not only with Russia, with the whole world, and in gold and foreign exchange reserves, too – slightly, from 61% to 59% there was a decrease in reserves in the world as a whole,” he added.
According to him, the share of the pound and the yen in the world gold reserves increased, while the share of the dollar decreased.
“If the American authorities continue this way, and will continue to decline, of course, in a natural way,” Putin said.
He also stressed that Russia with many countries is switching to settlements in national currencies, and baskets of currencies are being created in some international organizations.
“Today, probably, the main trend is an increase in the number of reserve currencies: I think that Arab countries are thinking about creating their own reserve currency, the euro is developing,… of course, settlements in national currencies. This is how we will move in different directions,” he said, speaking at the Russia Calling Forum.
“We will not give up the dollar, we will work with the dollar, as much as the dollar wants it – it doesn’t want it and we don’t need to, we will reduce it,” Putin added.
The regulation of digital platforms in Russia should not constrain economic activity, said Russian President Vladimir Putin.
” China had a fairly liberal policy towards all digital companies, it was natural, because the work was just beginning, conditions were being created, our Chinese friends created such conditions when it was profitable to come and work in China,” Putin said.
However, Putin continued, now that the importance of digital platforms in the economy, in political and social life has increased dramatically, China is taking their work under tighter control.
“There is nothing surprising and nothing unusual here. Why? Because, pay attention, do they not do this in Europe, in the States they do not talk about it? Yes, all over the world they do. The only question is in the level, in the volume of this regulation. In general… a balance must be struck between freedom of entrepreneurship, the dissemination of information and the interests of the state and citizens so that digital platforms do not abuse anything,” Putin stressed.
He noted that he understands the logic of the actions of the Chinese partners.
“As for Russia, we will act on the basis of the situation that will develop in our country. Yes, some elements of regulation should be in Russia today, but not those that would fetter economic activity,” the president concluded.

About the author

The Frontier Post

Leave a Reply