14 Oct. 2021 19:31
The Russian President has pointed out that the US is single-handedly destroying the US dollar’s reputation as a global reserve currency. More and more countries are saying goodbye to the US currency, fearing that they could also face sanctions.
Washington is independently undermining the US dollar as a world reserve currency by using the currency as a sanctioning instrument around the world while building up national debt and fueling inflation domestically. Russian President Vladimir Putin pointed this out in an interview with Hadley Gamble on Wednesday CNBC after a panel discussion at the Russian Energy Week forum. He said:
“It seems to me that the United States is making a very big mistake in using the US dollar as a sanctioning tool. And it is doing this by preventing US dollar payments for sanctioned products. It is simply impossible for us to get the money in US dollars from our customers for the delivered products. What does that lead to? We are simply forced and have no choice but to switch to other currencies. “
Gamble asked about the possibility of using cryptocurrencies to sell oil and gas, which Putin basically did not oppose. He pointed out that although cryptocurrencies could be a unit of account, they have so far been very unstable.
Russia still accepts the US dollar in energy trading and has so far no plans to completely abolish the US currency, noted the Russian President. He added:
“We are reducing the US dollar in our reserves and in our accounts. That is not always possible, but we are trying to switch to accounts in national currencies. In this context, one can say that the US is sawing where it is going Because in this way they undermine the competitive advantage of the US dollar as the only world reserve currency and violate their strategic economic interests in the course of a short-term political boom. “
“If the US government continues to adhere to the policies I mentioned, we don’t even have to do anything – the US will undermine confidence in the US dollar itself.”
The US allies would also reduce their US dollar holdings and their dependence on the US currency in mutual trade. Not only because the US dollar is being used as a weapon of sanction, but also because Washington is devaluing the currency in its own country by printing money and increasing the national debt. Putin stated:
“The US Congress has once again decided to raise the national debt ceiling. So what does that mean? Issues. What are issues? It’s an increase in inflation. And perhaps for the first time in history, inflation in the US is rising with it a speed that has not existed for a long time. “
“These are economic reasons that undermine confidence in the currency in one way or another. Everyone asks, what now? What are US economic authorities going to do in the face of this colossal debt? Are they going to manipulate the US dollar? diminish its value? What are they going to do about the debt? “
These are questions of a fundamental nature that would arise with a view to the situation in the USA. However, only the policies of the Federal Reserve System and the US government would have an influence on this. The entire world economy depends on the health of the US economy, Putin said. Although Russia has an objective interest in ensuring that there is no turbulence or tremors there, the situation does not depend on Moscow. The Russian President added:
“We take a close look at what is happening, analyze them and take the necessary measures to protect our long-term interests.”
more on the subject – Loss of confidence: Russians part with their US dollar savings