Leaders within Russia’s financial market have revealed that the nation is moving away from its dependence on the U.S. dollar, opting instead to align with Asian currencies – specifically the Chinese renminbi.
The top official at Deutsche Bank in Russia explained that this move has been in the works for some time.
“Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies and to set up accounts in Asian locations,” Pavel Teplukhin said.
He went on to conclude that this development is likely a sign of the Russian economy’s future.
“It looks like this is not just a blip,” he said. “This is a trend.”
Another top banker, VTB head Andrei Kostin, noted in a briefing before Russian President Vladimir Putin that such a shift makes sense for the nation.
“Given the extent of our bilateral trade with China,” he said, “developing the use of settlements in roubles and yuan is a priority on the agenda, and so we are working on it now.”
Additionally, reports indicate Russian officials believe sanctions imposed by America and Europe might force the nation out of the market currently dominated by the U.S. dollar.
Contracts among Russian corporations are also beginning to move away from reliance on the dollar. As one manufacturing executive noted, it pays to be prepared for any eventuality that might render the U.S. standard problematic.
“If something happens,” he said, “we are ready to switch to other currencies – for example, to the Chinese yuan or the Hong Kong dollar.”
As for the nation’s official stance, Putin’s economic advisor suggests there is no impending need to completely reject the American currency.
“As long as Russia is not subject to systematic sanctions, which could bring an artificial limit to our economy’s access to dollars,” Andrei Belousov explained, he sees no need for Russia to “take any steps in order to bring about artificial de-dollarisation.”
Photo credit: Ed Yourdon (Flickr)
This post originally appeared on Western Journalism – Informing And Equipping Americans Who Love Freedom