Who is affected by the sanctions imposed by the United States of America and the West on Russia? Is Moscow really affected, or the West, which lost Russian gas, and is on a date with a difficult period ahead due to the lack of energy supplies? It is certain that everyone loses, and that any war, regardless of its outcome, leaves losses on the warring parties.
The ongoing war (land) in Ukraine, and there is another parallel war that is taking place in the world’s stock exchanges, markets and banks, and it is a currency war, which Moscow may have started since 2014 when it annexed the Crimea, in order to confront the dollar’s domination of world markets, and the Russian government has also taken more steps Seriousness to limit the use of the dollar in its international transactions, in return for increasing the use of its official currency, the ruble.
Russia reduced the dollar’s share of its cash reserves and replaced it with the Chinese yuan, as well as the dollar’s share in Russian trade with friendly countries, by pushing Moscow to conclude various agreements with several other governments to prioritize the use of local currencies in bilateral trade.
Moscow issued a decree in March 2022 to sell Russian oil and gas to unfriendly countries, according to “Russian expression,” in rubles instead of dollars and euros, which is a prerequisite for the continuation of gas contracts with those countries.
Other Russian gas, such as China and Turkey, will directly settle part of the payments for export receivables in rubles and the Chinese yuan, and thus Russia is gradually shifting towards settling foreign energy exchanges through currencies other than the dollar and the euro, the currencies of the anti-Russian countries.
In addition, Moscow sought to reduce dependence on the infrastructure of the international payments system, as it established a new domestic electronic payment system “MIR”, and in recent years it launched the “SPFS” system for exchanging messages between banks as an alternative to the “SWIFT” system.
But it seems that the Russian measures - so far - have not yielded results, although the United States is entering a difficult period, and it seems that the ruble will not be able to become an international currency in the near future; Due to its inability to compete with the dominant currencies in the global economy, especially the dollar.
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| Dollar vs Ruble |
but the entry of some countries on the front line such as Armenia and Iran other than Turkey and China, which announced their intention to adopt a payment mechanism to allow the use of the Russian ruble in trade exchange with Moscow; With the aim of strengthening their trade relations - it may reverse the situation in the coming period, which may witness stronger confrontations in the currency war arena.
* Quoted from website internet
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