The decline in the predictability of US policy casts doubt on the reliability and usability of the dollar in mutual settlements. This was stated by the Deputy Foreign Minister of Russia Alexander Pankin in an interview. “RIA News”…
He noted that the downward trend in the use of the dollar in mutual settlements on trade operations was an objective reaction to the current geopolitical reality.
“The decline in the predictability of US economic policy and the uncontrolled introduction of unreasonable restrictive measures by them call into question the reliability and convenience of using the American currency as the priority currency of the contract,” added Pankin.
According to the Deputy Minister, in such conditions, countries and companies are forced to take measures that are designed to reduce economic losses and risks during transactions, and show interest in the development of alternative methods of mutual settlements. In this light, the expansion of the use of national monetary units in trade operations with other countries is becoming increasingly relevant and becomes a key area of the current foreign economic agenda, he said.
April 2, Associate Professor of the PRUE. G.V. Plekhanov Denis Domashchenko said that it is impossible to make a high-quality forecast of the foreign exchange market in general, and especially in relation to the ruble, because many multidirectional factors act on the Russian currency. According to him, high uncertainty is provoked by expectations of tougher sanctions. As Domashchenko added, without the risk of sanctions, the ruble would be 10-15% more expensive than current levels.
On the same day, senior analyst at Alpari Eurasia Vadim Iosub reportedthat in 2020 the ruble may strengthen by almost 10%, as a result of which the dollar will cost below 70 rubles, and the European currency – below 85 rubles.
On March 19, the Central Bank raised its key rate from 4.25 to 4.5% for the first time since 2018. The Ministry of Finance said that an increase in interest rates is inevitable, and in the future the key rate will be higher than the current one. It can grow up to 5-6%.
At the end of March, the head of the Ministry of Economic Development and Trade Maxim Reshetnikov said that inflation in the Russian Federation had reached its peak of 5.8% and should soon decline. He admitted that this year it could reach the target of the Central Bank of 4%.
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source https://pledgetimes.com/the-russian-foreign-ministry-assessed-the-reliability-of-the-dollar-in-mutual-settlements/
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