Putin says shift to national currencies indicates ‘end for US dollar’

Russian President Vladimir Putin has stated the growing use of national currencies for cross-border exchanges signals the end of the hegemony of the US dollar.

Speaking on Friday at the St. Petersburg International Economic Forum (SPIEF), Putin said the present trend of using local currency for cross-border trade, including in the energy trade, indicates the demise of the dollar.

The Russian leader said currently more than 80 percent of Russian trade with China was either in yuan or rubles, while about 90 percent of Russia’s trade with the countries of the Eurasian Economic Union was done in rubles.

Putin pointed out that the dollar reserves held by the world’s major economies were rapidly getting smaller, as are trade settlements using the US currency, while many nations are pitching projects to create new reserve currencies.

“The share of settlements in the dollar is declining. The share of settlements in yuan is growing,” he said.

“Oil producers in the leading Arab countries are now saying that they are ready to pay for oil in yuan… If this trend gains momentum and other oil and gas exchanges appear where settlements are not made in dollars, then this is the beginning of the end for this currency,” Putin said.

Putin insisted that Russia has never had any intentions to de-dollarize, neither its domestic economy nor the global economy.

However, he pointed out, due to the US sanctions policy against Russia after the Ukraine crisis, Moscow was forced to ditch the greenback for other currencies to keep its economy running.

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