June 17, 2023
Putin in the O-tone about the dedollarization of the global economy
Sanctions
At the panel discussion of the Petersburg Economic Forum, Putin was also asked about the role of the dollar in de-dollarizing the global economy and Russia's role.
17. June 2023 08:00 am
Russian President Putin already very aptly characterized this policy of the USA in 2018 when he was asked at the panel discussion of the Petersburg Economic Forum why Russia is turning away from the dollar. Putin's answer began as follows:
"We do not have the goal of turning away from the dollar, the dollar turns away from us. And those who make the appropriate decisions not only shoot themselves in the knee, but a little higher. Because such instability in the settlements in dollars leads to the fact that many economies of the world are looking for alternative reserve currencies and creating payment systems independent of the dollar."
Putin was right, as time has shown. Now he was asked about it again at the Petersburg Economic Forum and I have translated the question and its answer. The "Mr. President" to whom Putin addresses in his answer is the Algerian president, who also participated in the panel discussion.
Start of translation:
Moderator: On the instruments, Mr. President. Instruments are not only used against Russia, but you are also credited with an interesting instrument against the USA. The economic and political power of the USA was largely based on the role of the dollar in the international financial system. And it is said that you are using the current conflict, the conflict with the USA, to initiate and accelerate the process of de-dollarization. First, is that true? And secondly, if that is true, what are the results of this process, the end of the dollar as a hegemon in the international financial system?
Putin: First of all, I would like to say, and I hope that the President agrees with me, that our friends analyze exactly what is happening in this area, also in the Arab world and in Africa. I would like to say the following: We have never had and never have the goal of dedollarizing Russia's economy. And there was and is not the goal of de-dollarization or influencing the de-dollarization of the global economy. The influence of a currency on the global economy is directly related to the economic power of the country that issues this currency. And the US economy is one of the largest economies in the world, even if it is now inferior to the Chinese economy by purchasing power parity. The Chinese economy has overtaken the American economy, but it is still a big economy. It is an obvious merit of the American people, who are talented and capable, no one denies that. It is only the case that today's political leadership is abusing the trust of the American people.
I say this in full knowledge of the facts. Partly because by pursuing short-term political goals - and it is still the question of whether these are the right goals from the point of view of the USA itself - they undermine their own power, also in global finance. By using the dollar as an instrument of armed struggle - there is no other way to put it - they raise doubts about the reliability of the US currency both as a means of payment in world trade and as a currency reserve.
The reserves of the world's most important economies in dollars are shrinking from year to year. Not as fast as some might have liked, but they are shrinking; just as in the global economy, payments are shrinking in dollars, they are shrinking into euros. Settlements in national currencies are increasing, for example in the yuan and in some currencies of the Arab countries.
It is not by chance that, regardless of the events in Europe, Latin America has developed ideas and projects to create its own currencies, and it is no coincidence that the Arab world has been talking about the creation of a single currency for a long time, and Asia is also talking about it. The share of the yuan in the settlement is growing. If the leading Arab oil producers now say that they are ready to sell their oil in yuan, you know, then we have absolutely nothing to do with it.
But if this trend prevails on the stock exchanges or other exchanges for oil and gas and the payments are not made in dollars - then this is the beginning of the end for the dollar. This has nothing to do with us. They are the ones who do all this alone, which gives me every reason to believe that today's political elites abuse the trust of the American people and pave the way to the negative consequences I mentioned.
End of the translation
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