The Russian president says that Moscow will work with its partners to make an international settlement system that is safe.
According to statements made by Russian President Vladimir Putin on Tuesday, the United States dollar and other currencies associated with the Western world would surely lose their status as the primary currency used in global cross-border transactions.
In his annual address to the Federal Assembly, the head of state said that Moscow would work with its allies to build a safe system of international payments that doesn’t depend on the dollar or the euro.
Putin says that the policies of Western countries are making the US dollar and the euro less useful for international payments.
He said that Russia’s former partners in the West are now making it hard for Moscow to make deals in dollars and other Western currencies.
Putin announced in December that the share of ruble transactions in Russia’s foreign trade had doubled since the beginning of 2022 and that it now accounted for one-third of the country’s settlements. This statement was made in reference to the fact that the ruble has been the official currency of Russia since the beginning of 2022.
He thought that more and more trade with Russia’s international partners would be made in national currencies instead of the US dollar and the euro.
The process of moving the Russian economy away from the dollar began in 2014 when the West put the first sanctions against Moscow over the reunification of Ukraine’s Crimea with Russia.
The process has been accelerated because of the sanctions that have been placed since the beginning of the military action in Ukraine. This is especially true after the United States and its allies froze over $300 billion worth of Russian foreign exchange reserves and other assets.