Russia's actions to reduce dependence on dollar

Russia's actions to reduce dependence on dollar

Russian Finance Minister Anton Siluanov detailed the actions taken by the government to reduce Russian economy's dependence on the dollar.

Siluanov noted that European companies are considering the idea of abandoning the dollar in transactions with Russia, switch to the euro is a natural consequence of the US policy.

"This is something that is decided by two sides, so we will now work with our partners. I think they are interested now too. As you know, there were reports about the initiative to create a euro-SWIFT payment system which will be used exclusively among European banks, European financial institutions for trade in oil, oil products and other commodities. I think the Europeans are already thinking about this. We are ready to join such initiatives," Siluanov said.

"That’s why it seems to me that this would be a way-out and response to these restrictions the U.S. is imposing on companies and financial institutions, using dollars for settlements," the First Vice Prime Minister explained.

The minister added that the Finance Ministry and the Central Bank were pursuing quite a moderate policy at the currency market. "In general, there is an understanding of how we should react to the emerging situation. I hope that the government's and the Central Bank's actions will promote the stability of the exchange rate," Siluanov told the Rossiya 24 broadcaster .

According to him, the Russian national currency had a sufficient safety margin, although the volatility at the finance markets was possible in the short term due to sanctions.

Siluanov said yesterday that the plan on de-dollarization of the Russian economy had already been prepared and submitted to the government. 

The professor at the department of the stock market and investments at the Higher School of Economics, Alexander Abramov, speaking with Vestnik Kavkaza, noted that Russia is ready to reduce the economy’s dependence on the dollar, since much has changed since the 90s. "People started to believe in the ruble. Now the ruble can be scolded for various devaluations, but, nevertheless, the population prefers to pay and save in rubles. What is important, it was achieved not by some administrative measures, but by improving confidence in the ruble by maintaining its stability," he said in the first place.

"Also, in my opinion, it is important that the foreign exchange market has been liberalized. Today, the citizens can easily buy and sell dollars, keep savings in it. And the authorities constantly emphasize that reducing dependence on the dollar will not affect ordinary citizens. This is also a very big economic achievement of our country. There are no serious restrictions for the dollar use, and the citizens have the right to decide in what currency to hold their money," Alexander Abramov stressed.

Professor of the RANEPA faculty of Finance, Money Circulation and Credit, Yuri Yudenkov, earlier supported the government's decision to refute rumors about a possible ban on dollar use. "The population should clearly understand that we have enough cash in dollars in the country now, and there should be no panic. The banks will pay all obligations and the Central Bank will help them in cash. As for the calculations, since there is a threat of blocking accounts of our leading banks, they need to take all possible actions," he warned, adding that the dollar can’t be replaced while trading with the United States.