-Russia continues de-dollarization process
Russia’s efforts to reduce the share of the dollar in the economy due to U.S. sanctions are ongoing.
Russian Deputy Finance Minister Vladimir Kolychev confirmed last week that the share of the dollar in the National Welfare Fund would be reduced next year due to geopolitical risks.
This decision was taken following an evaluation of the various currencies for the foreign exchange structure in the fund.
“We evaluate various currencies including yuan for investment. The Central Bank of Russia has already taken steps in this direction, and we will follow,” Kolychev said.
As of Nov. 1, the National Welfare Fund, which has a volume of approximately 8 trillion rubles ($124 billion), held a 46% share in foreign exchange investments out of which the dollar share was 45%.
The Russian Direct Investment Fund (RDIF) Chairman Kiril Dmitriyev also spoke last week on working to develop a joint payment system with BRICS members, including Brazil, Russia, India, China and South Africa.
Dmitriyev, in highlighting the risks posed to the global payment, promoted a payment system for BRICS, which accounts for 20% of the world's foreign direct investments.
"At BRICS Business Council, we discussed creating a common payment system and this idea was supported by all members," he said.
He added that "an effective BRICS payment system can regulate payments in national currencies and ensure the stability of payments and investments between BRICS member states."