even pegging the national currency to the dollar is fraught with consequences – Kommersant

President Vladimir Putin commented on the ideas of the new President of Argentina, Javier Miley, to switch from the peso to the dollar. He noted that abandoning the national currency is a significant loss of sovereignty. According to him, even just a peg to the dollar is fraught with serious consequences.

“If there is no national currency, you can’t print anything. There is one way – a tough reduction in government spending,” the president said during the “Results of the Year”. He also cited data according to which the share of the ruble in Russia’s foreign trade as of September of this year increased to 40%, the yuan – to 33%, the share of the dollar and euro, on the contrary, decreased to 33%.

According to Vladimir Putin, Russia benefited from the increase in the volume of the ruble in international payments, and Western countries, having decided to impose sanctions against Russia and thus reducing the volume of dollars and euros in international payments, “shot themselves in the foot.” He also noted the role of the decree on regulating foreign exchange earnings in strengthening the ruble.

By data The Central Bank, in November, Russians demonstrated abnormal demand for dollars and euros. During this month, exporters increased foreign currency sales to almost the maximum: the market received 91% of revenue. Thanks to this, the ruble exchange rate strengthened by about 4% over the month.

Read more in the Kommersant article. “The currency is set to sell”.