WSJ: Dollar’s role in the Russian economy has been shrinking

Baku. 12 November. REPORT.AZ/ Russia is trying to wean itself off the greenback as its economy buckles under U.S. sanctions and the country prepares for stricter penalties expected later this month, Report informs citing the Wall Street Journal (WSJ).

According to the WSJ, the so-called de-dollarization process, backed by President Vladimir Putin and Russia’s central bank, should help soften the blow if new Western sanctions target the financial system.

Already, the dollar’s role in the Russian economy has been shrinking. The share of foreign-currency deposits held by individuals and firms in Russian banks has fallen to 26% this September, from a 2016 peak of 37%, according to Wall Street Journal calculations based on central-bank data. And the share of dollar-priced export revenues fell to 68% in the second quarter of this year, from over 80% in 2013, central-bank data shows.

Russia’s fast-growing trade with China is a case in point. The share of trade priced in rubles and yuan has nearly quadrupled in four years to around 19% of their bilateral trade and will continue to expand, according to Dmitry Dolgin, Moscow-based economist at ING Bank.

"Russia is joining a growing number of countries pushing back against the hegemony of the American currency," the WSJ reported.