The dollar’s steadfast grip on the global trading and financial systems in the era since World War II is no longer as assured as it once was.
Russian President Vladimir Putin took another, albeit highly symbolic step in ousting dollar from Russia’s financial system, following through on his call to de-dollarize the nation as the standoff with the U.S. intensifies. His country’s wealth fund, where the government sends its energy windfall, will now shrink its dollar share to zero and grow holdings of euros, yuan and gold instead.
Nearly all state energy companies shifted to payments in local currencies with its international partners, Deputy Finance Minister Vladimir Kolychev said June 3 at a conference in St. Petersburg. The next step is to change benchmarks themselves into euro, yuan and so on, and governments are already discussing this, he said.