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2 Oct, 2019 14:33

US move to weaponize its currency is destroying dollar in international trade – Putin

US move to weaponize its currency is destroying dollar in international trade – Putin

Russia never wanted to turn away from the US dollar but American policies have forced it, as well as many other countries, to do so, President Vladimir Putin told participants of the Russian Energy Week forum on Wednesday.

The US’ attempts to weaponize its national currency and use dollar settlements as an instrument of political pressure is a great mistake, according to the Russian president. He explained that Washington’s actions have already forced many countries, including US allies, to reconsider the greenback as a reserve currency, while dollar settlements have already slid from 50 percent to 45 percent.

“The dollar enjoyed great trust around the world. It was almost the only universal currency in the world. For some reason, the United States began to use dollar settlements as a political tool, to impose restrictions on the use of the dollar,” Putin told the audience.

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“They [the US] are biting the hand that feeds them,” he said, adding that sanctions only “undermine the trust in the dollar, isn't it clear, that they are destroying it with their own hands?”

Moscow has recently slashed by half the share of the US dollar in its foreign currency reserves. However, such a move is not Russia’s choice, but the result of Washington’s sanctions and restrictions as Moscow and its allies want to protect themselves and diversify settlements, according to Putin. Thus more than 70 percent of settlements between the members of the Russia-led Eurasian Economic Union (EAEU) are in rubles, while many other countries are switching to payments in national currencies instead of the dollar.

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