Russia working to de-dollarise

The Russian government is planning to de-dollarise its $1.6 trillion economy and move its major industries away from US dollars. Russia has been under heavy US and EU economic sanctions for 4 years, which has already limited Russia access to dollar and put constraints on the economy.

More sanctions on Russia from the US are expected due to alleged election meddling. These new sanctions would cut off Russia biggest banks from the dollar and access to debt markets.

These US sanctions are motivating Russian President, Vladimir Putin to de-dollarise as a way of elevating the pain the Russian economy is feeling at the moment. Russia is planning using other global currencies to allow its banks and it defence companies to continuing doing international business.

The Russia’s own currency the Rouble is also an option in which Russia’s major trade partners will be suggested to use as way of conducting import and export business.  The problem may stem from Russia heavy reliance on exports commodities and energy which are markets dominated by the dollar.

 

Source: ft.com

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