Russia to ban dollars?

Dmitry Piskulov, chairman of the board of the National Currency Association, clarified that the switch to payments in rubles for exports and imports was necessary to protect the country from sanctions. Russia will not be able to receive money for exports of oil and gas if US banks freeze Russian assets. Unfortunately, according to Piskulov, Russia has no state policy to encourage foreign trade in rubles and stimulate foreign and national traders to buy and sell for rubles. The expert reminded that China, on the other hand, was promoting trade in yuans.

Considering reduction of dollar circulation, the analyst reminds that it would violate international treaties. Russia is obliged to follow article 8 of the IMF Charter that does not allow any limitations to currency conversions. Instead of imposing bans, Russia should stabilize the ruble with its normal rate and inflation, emphasized Piskulov.

Alexander Abramov, a leading scientist at the RANEPA Presidential Institute for Applied Economic Research, expressed confidence that Ryabukhin’s statement had been more political than economic. According to the expert, trade in rubles will only favor local economy but fail on the global market. He is opposed to restrictions to dollars because it would scare the population.

Mikhail Kuzmin, an analyst of Investcafe, added that the West would not approve the switch to trade in rubles. He expressed confidence that Ryabukhin’s statement will affect positions of the ruble. The analyst reminded that the outflow of capital will have a much greater effect that people rushing to sell dollars for rubles. He added that the statement will prevent the formation of new currency deposits.

The dollar dropped in price by 0.15 rubles at the Moscow Exchange.

Russian legislator Sergey Ryabukhin, head of the Federation Council committee for budget and financial markets, proposed a reduction of dollar circulation throughout the country last weekend. He called the domination of dollars disrespectful towards such a resource-rich country. Ryabukhin proposed the adoption of ruble payments for Russian exports and imports.Dmitry Piskulov, chairman of the board of the National Currency Association, clarified that the switch to payments in rubles for exports and imports was necessary to protect the country from sanctions. Russia will not be able to receive money for exports of oil and gas if US banks freeze Russian assets. Unfortunately, according to Piskulov, Russia has no state policy to encourage foreign trade in rubles and stimulate foreign and national traders to buy and sell for rubles. The expert reminded that China, on the other hand, was promoting trade in yuans.Considering reduction of dollar circulation, the analyst reminds that it would violate international treaties. Russia is obliged to follow article 8 of the IMF Charter that does not allow any limitations to currency conversions. Instead of imposing bans, Russia should stabilize the ruble with its normal rate and inflation, emphasized Piskulov.Alexander Abramov, a leading scientist at the RANEPA Presidential Institute for Applied Economic Research, expressed confidence that Ryabukhin’s statement had been more political than economic. According to the expert, trade in rubles will only favor local economy but fail on the global market. He is opposed to restrictions to dollars because it would scare the population.Mikhail Kuzmin, an analyst of Investcafe, added that the West would not approve the switch to trade in rubles. He expressed confidence that Ryabukhin’s statement will affect positions of the ruble. The analyst reminded that the outflow of capital will have a much greater effect that people rushing to sell dollars for rubles. He added that the statement will prevent the formation of new currency deposits.The dollar dropped in price by 0.15 rubles at the Moscow Exchange