The proposal is part of a series of measures marking a de facto abandonment of more than a decade of economic policy by the Kremlin, which is testing its strategy amid sweeping sanctions imposed by the US and its allies.
The Russian government is considering a plan to buy $70 billion in Chinese yuan and other friendly currencies this year. Bloomberg reported this.
The proposal is part of a series of measures marking a de facto abandonment of more than a decade of economic policy by the Kremlin, which is revisiting its strategy amid sweeping US-imposed sanctions. and its allies in Russia’s invasion of Ukraine.
According to the publication, this plan was supported in a special “strategic” planning meeting with senior government and central bank officials on August 30. He also quoted the presentation of this plan, which was closed to the public.
“The frozen $300 billion did not help Russia. On the contrary, it became a symbol of weakness and missed opportunities,” said the presentation, officially recognizing the real impact of Western sanctions.
The document also states that savings in reserves, which were later frozen after the Russian Federation’s full-scale invasion of Ukraine, “is a direct reduction in investment in Russia in favor of investment in other countries.”
“In the new situation, it is very difficult and unprofitable to accumulate liquid foreign exchange reserves for future crises,” the presentation said.
Even buying the currencies of “friendly” countries, according to the authors of the document, is a problematic task, since the sale of the yuan “requires a separate agreement with China, which will be very difficult to achieve during a crisis.”
Other currencies, such as the UAE dirham, face “high political risk” as those governments may change their policies while the Turkish lira faces a serious devaluation risk, the document said.
Earlier it was reported that the collapse of the Russian economy was less rapid than expected, but should be accelerated, analysts said. Three months of war against Ukraine set Russia’s economy back four years.
News from Correspondent.net on Telegram. Subscribe to our channel Athletistic
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.