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The more America imposes its sanctions on Russia, the more natural is the desire of the latter to avoid the risk of the consequences of these sanctions.
The rejection of the dollar in this regard is something that has been expected for a while, and is happening now.
Russia’s decades-long drive to reduce its dependence on the unpredictable US dollar reached a milestone as the share of exports sold in US currency fell below 50% for the first time ever.
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According to central bank figures released late on April 26th, the main decline in the use of the dollar occurred in Russia’s trade with China: more than three-quarters of the dollar turnover was replaced by the euro. According to data for the fourth quarter, the share of the single currency in total exports jumped by more than 10 percentage points to 36%.
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Multiple rounds of sanctions and the constant threat of future ones have prompted Russia to look for ways to isolate its economy from US intervention.
The central bank also cut its treasury holdings in international reserves, instead increasing the share of gold and the euro.
The move away from the dollar in trade with China accelerated in 2019, when the major oil company Rosneft switched to the euro. While the share of the single currency in trade with China declined in the first half of 2020, it rose sharply in the fourth quarter.
In April 2021, Washington imposed new sanctions on Russia, including restrictions on the purchase of newly issued sovereign debt, in response to allegations that Moscow was behind the SolarWinds Corp. hack. and intervened in last year’s US elections.
The Biden administration has said it is ready to escalate and strengthen sanctions if the Kremlin does not stop hacker attacks and attempts to intervene in the political process in the United States.
Russia must take urgent measures to reduce the use of the dollar to a minimum to eliminate dependence on “this” toxic source of constant hostilities,” Deputy Foreign Minister Sergei Ryabkov said in an interview in February.
This has, as mentioned above, been a trend for a while. Back in January 2020, Russian Foreign Minister Sergey Lavrov commented on the matter.
“Against the background of the increasingly aggressive use by the US administration of financial instruments of sanctions pressure, Russia continues its policy of a gradual de-dollarization of the economy. Simultaneously with our main partners, including India, we are working on economic and legal mechanisms to reduce the negative impact of restrictions on the development of bilateral trade and investment ties,” Lavrov said.
He explained that the move away from the dollar is due to the unpredictability of Washington’s economic policy and the blatant abuse of the dollar’s status as the world’s reserve currency.
“One of the priority areas is the expansion of settlements in national currencies. In June and October last year, the relevant intergovernmental agreements on settlements and payments were concluded with China and Turkey,” the minister added.
The BRICS countries have previously come to an understanding of the need for central banks to open corresponding correspondent accounts.
Now Russia and India are working on the development of a new intergovernmental agreement on the mutual protection of investments, which should increase the protection of Russian and Indian investors.
“The agreement on a free trade zone between the Eurasian Economic Union and India, which is currently being worked out, is also intended to contribute to this,” said the head of the Russian Foreign Ministry.
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Moving away from dollar to euro is still moving from dollar to dollar!
Not really.
Exactly. But the sheeple dont bother. They believe in everything the media tells them……..LOL. https://uploads.disquscdn.com/images/1eadfacb61d69880eac6ef1e114c01239b479530a8c963423347d2c4d2d32de8.jpg
T.J = living proof of that
Not..because Europe cannot freeze Russian assets in Euros because everyday need Russian Gas…
Yeah… Because the assets in Euros can’t be moved outside Europe
You are not to be argued with, for reason….. https://antiempire.b-cdn.net/wp-content/uploads/2021/04/Stupidity-1619533781.6413.jpg
Most excellent Comrades 🤗👍🥇 Keep it up. CIAtrolls and the FED will cry and rage…
I think they are all cried out by now,its time for screaming.
What will be interesting is when the Russians make the US pay for 500,000 bpd in Rubles.
That sounds like a good idea.
Only goods sold to USSA should be priced n Dollars. So 99% of Russian exports should not be in dollars
Half way there… keep it up guys.
For America a drop in the ocean. The chart shows further RUB too lost its International market share, and the USD reduction went to Euro. As Euro is dependent on the USD and US banks, why the story is a non case……………………….LOL.
This whole article is propaganda. The reason Russia is using euro’s instead of USD is because of a shortage of USD on the world market. The reason for this is the vast holding of US speculators in toilet paper. Biden has declared the USA TP independent. The Russian led TPEC cartel is in complete disarray and in some cases drowing in tears. The USA now has the largest TP holdings in the world …. suck on that Russia!!
The use of Euros instead of USD is because Russia can do it!..other countries will face severe sanctions if they try to do the same!…
USA is going to sanction Ukraine for trading in Euros, with EU ;)
keep laughing
When the dollar will collapse many riches will go into smoke in a few minutes, and a pile of debts will not be paid, wise are those nations that are preparing for time.
Wait until the sun collapses, it will be really scary
Can you do 15 minutes of standup?
Time is coming when the BRICKS will trade in local currencies, and become the pillars of financial activity in their respective regions.
Which altcoin should I buy?
Should have baught doge in january.
There is one called tethered bitc coin, check it out porky.
I did already in 2018 :)))))
Hahaha then you had a nice early april surprise.
Congrats!
Replacing one currency controlled by a hostile power with another currency controlled by another hostile power leaves Russia in the same position of servitude.
It’s not even another :))
You are not to be argued with, for reason… https://antiempire.b-cdn.net/wp-content/uploads/2021/04/Stupidity-1619533781.6413.jpg
Odd that Yuan or some other digital currency does not show up. Does this mean that China keeps a foreign reserve of Rubles and Euros to trade w/Russia?
Not China , some Chinese banks… They have written agreement to trade, exchange in their own local currencies (their banks accept “Ruble” “Juan”) On top there is Juan backed by gold option. That was all agreed BEFORE digital Juan (bollocks)
Call me when it’s 100%. Even then that won’t be enough to crash the dollar, which is the backbone of the American empire!
Wake me up when China has sold half of their gigantic pile of dollar bonds. Then something is about to happen.
Not even then. They will just print more dollars. The dollar must be replaced as a reserve currency, then we can talk.
The problem is your country has no natural reources left whatsover. It is capable of sustaining its hegemony on the predatory capitalism techniques it learned from its British cousins. to date, only Australia and to a lesser extent Canada, have significant natural resources to aid their “Anglo-American” big brothers. The crash will be hard and brutal. Get used to living in a sand-box.
Russia’s GDP is LESS THAN THAT of the State of Texas, USA … hello?
Russia is an oil well with NUKES and a failing demographic …
C’mon Man!
No one is emigrating to Russia … the empire is long gone … and it’ll be a failed state by 2050
next
And what are we dipshit?
We dont even have nukes. Our demographics aint good either.
You talk like a teenage girl.
Reading comprehension not your thing … cementhead
‘We’ ? Whose ‘we’?
Construction materials arent your thing. Cement aint concrete.
There is nothing else to comprehend from you. Your a vicious little ukronazi snake spewing hate online and trying to intimidate others.
Your a coward hiding, if you hate russia so much join Azov battalion.
The fact that you use McCain’s argument speaks volumes about you
McCain used the same thought?
I’m ok with it
Data is scientific …
That is straw-man argument – the US has a couple of monster economic states – California being the traditionally big one (though due to high state taxation its wealthier companies are notably relocating in last few years – primarily to Arizona and Texas). But, there are plenty of very mediocre US state economies – that are in some instances tied to federal dependency. BTW, your own logic equally applies to Israel – its economy is largely insignificant in global terms, ranked at thirty-fifth, and it has colossal demographic issues. With the current Arab minority, within occupied territories, growing proportionally faster than that of existing Jewish majority. Meaning, the future demographics will likely make the current political structure unsustainable by, say, 2050 – unless openly acknowledge and institute some sort of full-scale Apartheid-like political system. But recent history indicates that: a.) such a scenario would just be delaying the inevitable, and, b.) most likely, when such a scenario finally devolves, it wont end very well.
1. Deflection … we weren’t talking about Israel 2. Israel is a country with 9 million people 3. Arabs on the WB are over counted … doubly counted in order for you to come to that conclusion 4. Lots of time until 2050 to resolve issues of WB Arabs
Err yeah – good luck with that. Sure you’ll solve it in a flash – just like all the other decades old, outstanding, ossified, issues with Arabs…
https://www.timesofisrael.com/expert-confirms-jews-and-arabs-nearing-population-parity/
https://www.vox.com/2018/11/20/18080086/israel-palestine-global-opinion
Area A & B are overwhelmingly Arab
Area C & Jordan Valley are overwhelmingly Jewish
next
I believe that it is a plan put in place for quite a while. The de-dollarization is and will continue to be the plan to sink the dollar into nothingness but it most be done at a slow pace to prevent a huge economic worldwide catastrophe. Many are now getting rid of US debt and exchanging non dollar currencies to prevent sanctions. It is proven that many countries are diversifying their foreign exchange reserves and stocking up on gold in the past few years alone exchanging dollars for gold.
So, clearly, something is happening. The trust in the US is at its lowest as most are tired of the brutal US foreign policies which never changes from one president to another. Their latest gaff was to weaponize sanctions for their own greed. That move proves that Americans are now desperate and that’s a sign of a failing empire. It also puts fear into allies as they could be next if they eventually refuse to play into US games.
Sending back US dollars back to America is the US biggest fear as they know that they are getting closer to being “Game Over”.
The US downfall is in the making. What happened to the former USSR is exactly what will happen to the USA. States will use self-determination to move away from Washington. Some will join together to become new countries while others will want to become new Canadian provinces.
Remember back in 2009, Clinton was begging China to purchase its debt as the US was extremely close to be bankrupt. China did save their butts by buying well over $3 trillion of debt. Who will save the US in the next financial crisis?
Good luck boys and girls.
Great development.
Surprised it is that high, considering how long the US has been napping at Russia’s ankles.
…and yet the Euro is a US Dollar derivative.
The sheeple dont care about technicalities. If they have decided the Dollar is down because of Ruble, its over…………………………..LOL.
They seem to function similarly with political decisions against Russia, so I can’t see the difference putting their faith in the Euro. Perhaps they need some sort of commodities basket weighed against a particular amount of Gold? And then bring the EU to the table using this.
Good-bye Anglo_American predatory genocidal capitalism. No one will miss you really!