The measures taken by the Russian Federation necessary for the development of the economy in terms of validation of Western sanctions (which includes creation of Russian national system of payment cards, withdrawal of reserves from US Treasury bonds, use of alternative currencies in international transactions, in particular by energy companies) threaten the possibility of dollar dominance in world markets. The development of the digital rouble is also important, which will help provide Russian banks with an alternative source of access to international liquidity and reduce their vulnerability to sanctions. This is reported by Foreign Affairs.
The factor of economic rapprochement between Russia and China should not be overlooked. The Central Bank of Russia has invested $44 billion in yuan, increasing its share of Russia’s foreign exchange reserves from 5 percent to 15 percent; Russia’s holdings of yuan are about ten times the world average and account for almost a quarter of the world’s yuan holdings.
The United States is again trapped: in an effort to help Ukraine by imposing sanctions against Russia, Biden will certainly accelerate the movement for de-dollarization, which in the long term will fundamentally weaken US global leadership. A powerful confrontation with China, which will include a break in financial and economic relations with the PRC, will lead to the same outcome.
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