Russia's Putin says 'political disputes' damaging dollar as reserve currency
Russian President Vladimir Putin today said "political disputes" were damaging the dollar as a reserve currency, shortly after Moscow exited the list of the biggest foreign holders of US government debt.
Russian President Vladimir Putin today said, "political disputes" were damaging the dollar as a reserve currency, shortly after Moscow exited the list of the biggest foreign holders of US government debt.
"Many countries in the world are saying that we need to create new reserve currencies -- this will make the world economy more stable," he said in Johannesburg, speaking at a press conference after a summit of BRICS countries' leaders.
"With regard to our American partners and the restrictions they have put in place, especially with regard to dollar payments, it is a big strategic mistake, because it undermines confidence in the dollar," he said.
"We must minimize risks -- we see what is happening with these illegal sanctions," he added of measures first imposed by Washington against Moscow over its annexation of Crimea and support for Russian-speaking separatists in Ukraine.
US Treasury Department data released this month showed Moscow held USD 14.9 billion worth of Treasury notes in May, well below the USD 48.7 billion held by Russia in April.
"Russia is not abandoning the dollar," Putin said in response to a question over whether Russia would drop the US currency in favor of the Chinese yuan.
But he said "political disputes" were "damaging the dollar as the global reserve currency".
"The yuan, of course, is acquiring the qualities (of a reserve currency). If it is able to be freely converted this will speed up the process," he added.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)