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US making mistake using dollar as political weapon - Putin | US making mistake using dollar as political weapon - Putin |
(35 minutes later) | |
Washington's use of payment systems for political purposes undermines the US dollar as a global currency, said Russian President Vladimir Putin at the BRICS Summit in South Africa. | |
"Regarding our American partners placing limitations, including those on dollar transactions, I believe is a big strategic mistake. By doing so, they are undermining the trust in the dollar as a reserve currency," said Putin. | |
Putin added that Russia has no intention of getting rid of the US dollar, as the currency is widely used in international trade and business. | |
"We will continue to use the US dollar unless the United States prevents us from doing so," said Putin in his closing address to BRICS leaders on Friday. | |
However, the Russian president emphasized the need for other currencies in global trade and the emergence of new reserve currencies like the ruble. | |
Putin explained Russia's liquidation of US Treasury holding and increasing of national gold reserves as a strategy to minimize risks. | |
The president’s comments came weeks after US Treasury data revealed that the Central Bank of Russia (CBR) had significantly reduced its holdings of US securities. | |
Russia launched a gradual sell-off of US sovereign debt in 2011, which has intensified over recent months, as Washington imposed numerous rounds of sanctions against Moscow. | |
So far, the Bank of Russia has slashed its holding by more than 90 percent, from over $150 billion to just $14.9 billion in May. The regulator explained the sell-off as part of Russia's strategy to diversify its reserves following a financial, economic, and geopolitical assessment. | |
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