Add to favorite
 
123
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa


Russia's Switching to Euro. The Process of De-dollarization in the Foreign Trade
August 16, 2019 00:41


(Source: https://www.forbes.ru/finansy-i-investicii)
Amid the desire to reduce dependence on the dollar, the share of settlements with major foreign trade partners in euros is growing significantly.

“I think the task should be set deeper - the de-dollarization of the global economy.” -  Andrei Kostin the VTB Head said at the International Financial Congress in St. Petersburg last summer. It was he who spoke out most actively for de-dollarizing the financial sector of Russia, and prepared a draft of proposals to the Russian President aimed at further expanding  of the use of the ruble in international payments.  Having  analyzed the statistics of the Central Bank for the first quarter of 2019, Bloomberg Agency  came to the conclusion that the role of the dollar in settlements with large foreign trade partners really decreased.

In general, the role of the dollar for Russian foreign trade is still significant. In the total foreign trade turnover of Russia ($ 687.5 billion), the American currency accounts for more than half of the calculations. Nevertheless, as the head of the Ministry of Finance, First Deputy Prime Minister Anton Siluanov, noted in December 2018, Russian companies were trying to abandon the use of dollar, since up to a third of dollar payments are delayed due to sanctions.

Amid the desire to reduce dependence on the dollar, the share of settlements in euros is growing significantly. The European currency has almost surpassed the dollar in settlements with the European Union and China. In settlements with the EU for Russian exports, the share of the euro for the year increased from 32% to 42%. As regards settlements with China, Russia's largest trading partner, the share of payments in euros for Russian exports for the year increased from 0.7% to 37.6% (the share of the dollar, in turn, fell below 50% to 45.7%).

Settlements in national currencies also increased, but not significantly. “Foreigners have limited access to the domestic financial market; it is not so easy to buy domestic Chinese securities. The yuan is not a fully convertible currency and therefore cannot play a significant role in the world trade,” Dmitry Timofeev, the head of the Ministry of Finance’s department for monitoring external restrictions, said in an interview with RBC. “Russia cannot single-handedly switch to settlements in national currencies, this should be supported by partner countries, therefore coordination at the international level and assistance from the governments of partner countries is required,” he explained.

Read More Articles about Russian Business
 
At the same time, settlements in national currencies are actively carried out with India, and the trade turnover is about $ 11 billion. 75% of Russian exports are paid in rubles (21% a year earlier). Recently, countries completed the coordination of the mechanism for calculating in national currencies for the supply of Russian weapons.
 
 



Author: Anna Dorozhkina

Tags: Russian business Russian economy Russian companies   

Next Previous

You might also find interesting:

Dramatic Bends in Viktor An's Life - True Story of Short Track Genius Francois Hollande Respects Depardieu Move To Russia Top 7 Russians in the Guinness Book of Records Foreign Legal Entities will be Allowed to Participate Without any Limitation in the Authorized Capital of SME in Russia Anti-Russian Sanctions Cost the EU Countries More Than 30 Billion Euros









Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share

search on the map
TAGS:
Suzdal  Moscow Museum of Modern Art  Dentistry  Albina Matveyeva  Archeological Finds  Global Warming  Gelendzhik  Russian tourism  crocodile  poll  Moscow Fashion Day  Vladimir Clavijo-Telepnev  Festivals in Moscow  Nizhny Novgorod Region  Veliky Novgorod  Exhibitions in Moscow  Mercedes-Benz Fashion Week Russia  Russian Museums   education abroad  City Hunter  ecology  Moscow  Russian regions  Russian air carriers  Biometric System  Timur Novikov  Russian Cinema  Modern Art  travel to Russia  terrorist attack  Russian Actresses  Transaero  Christmas holidays  Silver Gate  Festivals  Russian business  ratings  Anatoly Mariyengof  fluorescent proteins  tax  physics  Oktyabrsky  Russian Railwys  Victory Day  TNK-BP  Russian churches  Cable TV  Sokolniki  Kizhi  St. Petersburg 


Travel Blogs
Top Traveling Sites