Last month, during an interview with CNBC, Russian Prime Minister Dimitry Medvedev explained that it was time for the entire globe to reduce its reliance on the United States dollar and its economy. He told the business news outlet that the international economy would benefit from a more diversified currency system.
Although Medvedev said the Russian Federation doesn’t maintain negative attitudes towards the greenback, he does think there needs to be a “just financial system.”
“We have nothing against the dollar, but we believe that today’s currency system should be more balanced,” said Medvedev. “The U.S. economy is now improving, but we have no proof that it will not go down again, and then everyone will suffer. We believe that we should move away from such dependency in the world’s financial system.”
The Russian Federation may now start to lead this initiative after it was reported by the Azeri-Press Agency (APA) that the government may ban circulation of the U.S. dollar, if an introduced bill is approved.
Legislation was introduced in the nation’s legislature that would officially prohibit the ownership and usage of dollars in Russia. If the bill is passed and signed into law by President Vladimir Putin, citizens will be required to shut down their dollar accounts in Russian financial institutions by next year and then exchange those dollars for rubles or another form of currency.
According to the proposed legislation, dollar accounts will be taken by the government and will be unable to attain in Moscow after a one-year grace period. It may very well be used by the Russian central bank and by government agencies, including the Foreign Intelligence Service (FIS).
If Russia is successful in this latest endeavor then it could establish a precedent for other nations that maintain a less than favorable position with the U.S. However, it could create greater tensions and potential invasions, sanctions and prohibitions that Washington is known to invoke if it doesn’t get its way.
Since the Russian-Ukraine conflict, the global community, led by the U.S., has imposed economic and financial sanctions against Russia. The Kremlin responded with sanctions of their own against an array of states, including the U.S., Canada, Australia, the United Kingdom and others.
Remember, the world doesn’t need the U.S.
Leave a Comment