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Russia makes progress in de-dollarization
Russia makes progress in de-dollarization

For several years, there has been a tendency among some countries to abandon the US dollar in international settlements, that is, the so-called de-dollarization. The experts of FinExpertiza, an audit and consulting network, estimated that during the sanctions regime, Russia managed to decrease the use of US dollar in its foreign trade by 12.6 percent. At the same time, the share of trade deals settled in the euro increased significantly, by 26.4 percent, while the share of invoices in the national currency surged by 14 percent. In general, the US dollar still accounts for the lion's share of payments - 56.1 percent, or 388 billion dollars. The euro takes the second position with the share of 21.9 percent, or 151 billion dollars. And the Russian ruble closes the top three with the figure of 20 percent, or 136 billion dollars. Other currencies account for 2.4 percent.

Even considering the fact that other major players such as the European Union and China have also decided to work towards the de-dollarization, it is impossible to do this in the coming years. The dollar is actively used in international settlements and it has no intention to lose ground. According to the international rating agency Moody's, it will take decades to make substantial progress on the issue. Despite the active development of regional trade and new reserve currencies, it is still difficult for the countries to abandon the currency of geographically distant states as reserve ones. Besides, it will not reduce the need to use the dollar in global trade much.

Published: 2019-05-15 12:28:22 UTC
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