MOSCOW – According to the French portal Les Échos, the lower use of the US dollar in the Russian economy produced good results and favored the ruble.
With rising tensions between Russia and the United States in 2014, Moscow is increasingly reducing its dependence on the dollar, both to circumvent US sanctions and to strengthen its economic power.
As published by the French portal Les Échos, such a policy has been presented by the increasing use of national currencies in trade between Russia and countries like Iran, China and Turkey, all who have strained relations with Washington.
In addition, Russian currency reserves in the BRICS countries increased, thus favoring trade between these countries, which amounted to the equivalent of $125 billion in 2018, which was also confirmed by the president of the BRICS VTB bank, Andrei Kostin.
“The share of non-dollar payments to the EU, China and BRICS countries has already exceeded 50%. Russian banks and US companies have reduced their dependence on dollar financing. The share of US dollar assets in Russian reserves is already halved,” said Kostin.
Still according to the media, the Russian ruble had fallen 17% against the dollar in 2018. However, with the dollarization the Russian currency has risen 7.6% since then.
Such a result could indicate greater independence of the ruble against the US currency.
This comes as the Russian Ministry of Finance has reported that the country will not borrow in US dollars until 2021.
“We will borrow in currencies other than the dollar,” Russian Finance Minister Anton Siluanov said on Thursday, adding that the country will not borrow any more in 2019.
“This year we have no plans to borrow more in foreign markets, we have fulfilled our program and even exceeded it. Next year we will see. It will probably not only be in euros, but perhaps in [Chinese] yuan,” said Siluanov.
In March, the Russian ministry issued €2.7 billion of Eurobonds due 2035. Three months later, the Finance Department issued €1.37 billion of additional Eurobonds to mature in 2029 and €900 million in 2035.