Dollar Stops Being Russia’s Basic Reserve Currency
- Another sign of the growing lack of confidence in the viability of the USD. Many countries are now initiating steps openly to do away with the USD or minimize their exposure to it. Pravda reports :
The US dollar is not Russia’s basic reserve currency anymore. The euro-based share of reserve assets of Russia’s Central Bank increased to the level of 47.5 percent as of January 1, 2009 and exceeded the investments in dollar assets, which made up 41.5 percent, The Vedomosti newspaper wrote.
The dollar has thus lost the status of the basic reserve currency for the Russian Central Bank, the annual report, which the bank provided to the State Duma, said.
In accordance with the report, about 47.5 percent of the currency assets of the Russian Central Bank were based on the euro, whereas the dollar-based assets made up 41.5 percent as of the beginning of the current year. The situation was totally different at the beginning of the previous year: 47 percent of investments were made in US dollars, while the euro investments were evaluated at 42 percent.
The dollar share had increased to 49 percent and remained so as of October 1. The euro share made up 40 percent. The rest of investments were based on the British pound, the Japanese yen and the Swiss frank.
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Societal and economics observer and commentator with an endtimes, future history perspective. Follow me at Twitter: socioecohistory
All national currencies servicing as a global currency will revert back to being a national currency, only. Right now we are in a transition stage where the commercial world are using national currencies for global transactions but they understand that at some point in the future there will be one currency for global trade. And this global currency will be regulated by policy wonks who will be working independently of national interest.
Russia is committed to the adoption of one currency for global transactions and they understand that the acceptance and adoption of the one currency system is a process that will take time.
I am guessing that Russia is deemphasizing the dollar for business reasons and not political reasons. And I am concerned that these moves away from the dollar by Russia, China, and others may create a panic that cannot be stopped through policy initiatives.