The Russian ruble fell 16.48% against the US dollar last month. This is because energy and commodity prices have slowed in recent weeks. Russia’s central bank said two weeks ago that he is moving further away from his reliance on the US dollar by buying Chinese yuan on the foreign exchange market. Around the same time, on December 21, 2022, Sberbank executive and member of the Russian Council on International Affairs (RIAC) Jaroslav Lisovoryk spoke about exploring the path to his new BRICS reserve currency. I published an opinion article to talk about.
Russia’s central bank aims to reduce reliance on US dollar with purchase of Chinese yuan
At the end of July, Bitcoin.com News reported on plans for the BRICS nations to create a new reserve currency after Russian President Vladimir Putin announced the plans at the BRICS summit in June. The topic was hot at the time, but people stopped discussing the BRICS reserve currency for a while. A few months later, in October 2022, Robert Kiyosaki, author of the best-selling book Rich Dad Poor Dad, discussed the matter and said the US dollar was “toast.” Energy and commodity prices have fallen over the past 30 days, but some economists expect oil prices to rise by $200 a barrel sometime in 2023.
The Russian ruble also fell against the dollar while energy and commodity values fell. According to statistics, the ruble fell by 16.48% against the US dollar in his 30 days, while the ruble rose by 1.72% according to five-day indicators. Year-to-date statistics show that the Russian currency has gained 5.37% in the past 12 months. Meanwhile, at the end of December 2022, Reuters reported that Russia will buy Chinese yuan in her 2023 currency market. Reporter Elena Fabrikhnaya said Moscow’s move, cited by her two sources, “opens a new frontier for accelerating de-dollarization.” A drive designed to reduce dependence on Western finance. ”
Sberbank Analysts Discuss Potential BRICS Reserve Currency to Complement National Currencies
A day earlier, on December 21, 2022, Yaroslav Lissovolik, member of the Russian Council on International Affairs (RIAC) and head of Sberbank’s analytical department, launched a meeting called “Finding a Path” to discuss the proposed BRICS reserve. I published a blog post with the title. currency. “The BRICS reserve currency has become particularly important in recent months,” said Lissovolik, following Russian President Vladimir Putin’s remarks at the BRICS summit. Analysts detailed that there was also recent legislation and debate about “the expediency of creating a new reserve currency.”
Lissovolik cited the latest discussion on the BRICS reserve currency at the 8th BRICS Parliamentary Forum. At the event, the President of the Bundestag, Valentina Matvienko, proposed that BRICS parliamentarians begin to take concrete steps to strengthen their economies. Matvienko singled out specific initiatives such as the development of a new international reserve currency and better payment procedures within her BRICS countries. Lissovolik’s blog post compared her new BRICS reserve currency idea to her Valdai Club’s R5 currency concept for 2018. The R5 currency is the name that stands for the letter “R” for her five currencies: real, ruble, rupee, renminbi and rand.
Lissovolik elaborated that the new BRICS reserve currency will not be created to replace the national reserve currency used by each country, but to “complement the currencies of these countries”. . Analysts at Sberbank said the new reserve currency could have a “transformative effect on the international financial system” as they believe there is a “significant shortage of reserve currency” in the global economy.
“Importantly, given the enormous potential for de-dollarization, there is considerable scope for the adoption of a new reserve currency in the global economy,” concludes Lissovolik’s blog post. “The new BRICS reserve currency can work in concert with the stronger role played by the BRICS national currencies to capture a greater share of the overall currency trading pie in the global economy.”
What do you think of the Sberbank analysts’ op-ed on the new BRICS reserve currency? Share your thoughts on the possibility of a new BRICS reserve currency in the comments section below.
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