Russia is doubling down on its de-dollarization efforts as Putin calls to reduce use of ‘toxic’ currencies

• Russia is pushing ahead in its drive to de-dollarize its economy, Putin said.

• The Russian president said the use of “toxic” currencies had been slashed in half.

• The nation has vowed to phase out the dollar after being slammed with Western sanctions.

Russia is forging ahead with plans to phase out the US dollar, with President Vladimir Putin calling the nation to reduce its use of “toxic” currencies.

Speaking at the St. Petersburg International Economic Forum this week, the Russian president pointed to the country’s declining use of Western currencies. The ruble is being utilized more in trade transactions, he added, despite the currency plunging in value in late 2023.

“Last year, the share of payments for Russian exports in the so-called ‘toxic’ currencies of unfriendly states halved, while the share of the ruble in export and import transactions is growing — it is approaching 40% today,” Putin said at the event, per a report from Reuters. “We will increase the use of national currencies in foreign trade settlements, improve the security and efficiency of such operations, including through BRICS.”

Russia will continue to ramp its use of BRICS currencies for trade, Putin added. He also introduced a handful of ambitious economic goals for Russia to meet by 2030, which included reducing imports from other countries, raising investment in fixed assets by 60%, and doubling the value of Russia’s stock market.

Russia has been shifting away from the dollar since 2022, after it began its invasion of Ukraine and was subsequently hit with Western sanctions.

Putin has rebuffed many of those trade restrictions, calling key measures, like a price cap on Russian oil, “stupid,” but Russia’s economy is struggling to get by as it grows increasingly isolated from global markets, experts have said.

Meanwhile, economists say there’s no threat to the dollar from these efforts, and it won’t be displaced as the world’s dominant currency anytime soon, even as more nations express a desire to move away from the currency.

The greenback has remained the top-used currency in global trade and in central bank reserves for decades. Currency experts note that it would take years to move away from the dollar, given its status as a safe-haven asset.

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