Putin put the ruble to guard the economy: the national currency will strengthen Russia’s sovereignty

Expert Belyaev: “You can completely abandon the dollar”

The decline in the dollar and the wider use of the national currency in the domestic economy increases Russia’s sovereignty and capabilities. Vladimir Putin stated this during his annual press conference. Recently, the share of foreign currency in the foreign trade of domestic exporters has decreased by more than three times. Western states that create problems for Russians with payments in foreign banknotes, according to the president, “shot themselves in the foot.”

If in 2021, when servicing exports, Russia used 87% of dollars and euros, while the share of the ruble was 11-12%, and the yuan – only 0.4%, then in September of this year the ruble increased its position to 40%, the yuan – to 33%, and the combined use of the dollar and euro fell to 24%. These statistics were cited by Vladimir Putin, answering a question from journalists regarding the national currency. According to the head of state, Russia is not abandoning the dollar. The reason for the reduction in the share of dollars and euros was the problems that Western countries began to create in settlements with their currencies. “The more a country uses its national currency in economic financial calculations, the better. This increases our sovereignty and capabilities,” Putin said.

According to Candidate of Economic Sciences and financial analyst Mikhail Belyaev, the course chosen by our country towards de-dollarization is justified, since American banknotes are gradually losing their role as the main reserve currency of the world.

– The share of the dollar and euro in Russia’s export trade has fallen more than threefold. Is this not a concern?

– The transition to the national currency in export-import payments is a completely objective modern choice. Why has the dollar become a priority in international trade operations? The dollar occupied a dominant position at a time when the United States dominated world production and, most importantly, world trade. Many countries entered into agreements with the States, and it was to this state that a lot of trade flows were directed. In such conditions, it was quite convenient to pay in dollars, since the “green” currency was in demand from a huge number of counterparties. After World War II, the American economy was the most stable compared to the financial situation of Europeans, and accordingly, there was no doubt about the stability of the dollar.

Now, in parallel with the United States, whose economy leaves much to be desired, other countries are rising to the financial pedestal of the planet, challenging Washington’s leadership in the international trade market, since they can offer foreign buyers a wide range of competitive industrial or consumer goods and services. This trend will gradually displace the dollar from its place as the undisputed leader of the world monetary system. Russia, against which strict financial sanctions have been imposed, is reorienting its interests from the West to the East. It makes no sense for our country to settle accounts with its Asian partners – China, Thailand, India, Vietnam, Indonesia and others – using an intermediary currency.

In addition, the West from time to time continues to tighten various restrictive measures regarding Russia’s external payments in dollars and euros. Why use a currency that is becoming increasingly unstable?

– What prospects does the transition to national monetary currencies promise for our international trade?

– To say that the abandonment of the dollar has brought any significant monetary benefit to domestic exporters is only a stretch. Rather, this trend is due to several factors: the objective global economic process, convenience in settlements with new counterparties, as well as an absolute reduction in the risks of using the currency factor as a sanctions tool. Therefore, the share of national banknotes in our country’s foreign trade operations will grow. As for dollars and euros, in the event of an even greater increase in Western economic pressure, payments in them can simply be abandoned.