"At the moment, the worldwide use of the dollar as a means of international settlements for the developing economies is associated with increasing macroeconomic risks," the analyst stressed. Let us recall the situation in Turkey. The tightening monetary policy of the US Federal Reserve provoked a crisis in the currency and financial market of the country. And more and more often we can hear that dollar is not so much a financial instrument as a kind of weapon.
RISS expert also noted that officials speak about the need to replace the dollar with another standard of world money, for example, with regional currencies. The analyst believes that Russia needs to concentrate on the EAEU countries in order to develop settlements in national currencies. The share of ruble deals in foreign trade in these countries is currently about 80%. This is a significant success compared to China, as its currency is not used outside the country.
I.Bazhenov underscored that there is a prospect for development of the ruble as a regional currency. In particular, the development of the bond market can play an important role in strengthening its role. He cited the example of Belarus, which has reached an agreement on the placement of government bonds in rubles on the Moscow Exchange.
"This is one of the first projects of its kind. These actions are gradually forming the necessary amounts of liquidity in the markets. These are the first steps to diversify the loan market. They will contribute to the further growth of the use of national currencies in the EAEU countries and reduce the share of the dollar," the analyst said.
"Washington seeks to push hard line on all issues, including the dollar hegemony. However, the more sanctions are used, the more countries will try to find alternative sources of liquidity and payment options. Against this background, the intention of many governments to move to safer assets seems rather logical. They form an increased demand for gold and ensure the growth of prices. This process will continue," he concluded.