Russian Cenbank downplays role of dollar and euro

The role of the dollar and so the euro as global currencies is prepared to say no. This can be actually because, after the West froze Russian reserves, the central banks rethink their strategies. They also told that it could consider imposing negative rates for dollar and euro deposits. Unprecedented Western sanctions have frozen around half Russia’s gold and forex reserves.
The Bank of Russia said that this precedent along with discussions will prompt other central banks, mainly in Asia and thus the nation, to rethink their savings strategies. The Russian financial organisation said in a very exceeding report that one could expect an increase in demand for gold and a decline within the U.S. dollar’s and thus the euro’s role. The Russian financial organization held $131.5 billion of its reserves in gold. Russia’s reserves slipped to $583.4 billion.
The institution said that the share of foreign currency in obligations that Russian banks had has declined recently. Their clients stepped up withdrawal of funds from their forex accounts, is that the reason for this. The financial institution mentioned the Chinese yuan and stated that one amongst the results of the imposed sanctions restrictions for the interchange market. This was the tendency to extend the utilization of currencies that are alternate to the U.S. dollar and also the euro.
Russia could consider imposing negative interest rates on banks’ deposits in dollar and euros. The share of foreign currency, in late 2021 in household assets, just like the stocks and deposits, has been relatively steady at 22%. The Russian private investors became the foremost steering power on the stock market. This was stated by the financial organisation.