Is it possible to move away from toxic currencies: dedolarization in Russia and the world

Abstract

In the context of ever-increasing sanctions pressure, the task of moving away from «toxic currencies» of the Russian economy is becoming more and more urgent. In the article the authors analyze the role of the U.S. dollar and the prospects of dedollarization in the modern world economy in general, as well as in the Russian economy in particular. As a result of retrospective and comparative analysis, the authors conclude that the dollar retains the status of the most reliable and stable currency. At the same time, Russia is gradually reducing the use of the dollar, although this process is rather forced than evolutionary. The authors also note the growing concerns of a number of countries about the use of the dollar as an instrument of political pressure by the U.S. leadership. According to the authors, the current situation is a potential opportunity to reorganize the international monetary system. Russia can be one of the initiators of this process and/or lead it. The necessary condition for the realization of such changes is the accumulation of a «critical mass» of interested participants. At the same time, these changes should be gradual and consistent, accompanied by the construction of new infrastructure. It seems reasonable to make an attempt to implement such changes first within the BRICS association with subsequent involvement of other regional associations, as well as individual interested countries. However, the issue of de-dollarization of the Russian economy and counteraction to sanctions of the «united West» inevitably leads us to the issue of structural adjustment of the Russian economy, which has been raised in the academic community for quite some time.