Russian Economist: ‘US Sanctions Will Undermine Dollar and Boost Digital Ruble’
A leading Russian economist has claimed that American sanctions will ultimately undermine the role of the US dollar in the global economy – and help the cross-border adoption of the digital ruble.
Per News.ru, the comments came from Alexander Razuvaev, a member of the supervisory board of the Guild of Financial Analysts and Risk Managers.
Razuvaev said that Washington’s “actions against Russia” in response to the war in Ukraine would “undermine global confidence in the American currency.”
In its place, Russian trading partners could well turn to CBDCs as a dollar alternative, Razuvaev said.
The economist said this scenario would likely be accelerated if the United States “for example” were to “transfer frozen Russian assets to Ukraine.” Razuvaev said:
“Unfortunately, the Russian Federation is not such a large part of the world economy. But, as we see, China is dumping American bonds and paying for Saudi oil in yuan. In a couple of years, Turkey and Azerbaijan may start trading using the digital ruble.”
Russia Prepares Legal Battle to Stall Seizure of Frozen Reserves – BNN Bloomberg https://t.co/NHiYrLDSk4
— Bill Browder (@Billbrowder) January 12, 2024
Razuvaev opined that it was now “more important than ever” for Moscow to “secure foreign trade” links.
And while he claimed that the bulk of Russia’s trade with China and Middle Eastern nations should be conducted in yuan and Emirati dirham, the Russian CBDC would also play an important role.
The economist said that trade “in the CIS” would soon be conducted “using the digital ruble.”
The CIS, or Commonwealth of Independent States, is a collection of former Soviet Nations that remain largely aligned to Moscow.
Key members such as Belarus and Kazakhstan began accelerating their CBDC
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