Russia significantly reduces use of dollar in trade with India, China: Report

Russia significantly reduces use of dollar in trade with India, China: Report Russia significantly reduces use of dollar in trade with India, China: Report

A new report suggests Russia has been considerably successful in its pledge to remove the US dollar from trade with others, adding that the greenback has been replaced by local currencies in nearly half of Moscow’s transactions with leading partners India and China.

The RT television network said in a report on Wednesday that Russia had been paid back in its national currency ruble in more than 75 percent of its exports to India as of the end of the first quarter of 2019.

The report said Russia’s trade settlements with China was also shifting toward a pattern of using currencies other than the US dollar, adding that rubles and euros were now the dominant means of such settlements with Beijing.

It added that the share of the US dollar in Russia’s settlements with India and China had reduced from more than 87 percent in the first three months of 2018 to less than 48 percent in the similar period this year.

Russia’s success in de-dollarizing the economy comes as the greenback has traditionally dominated Moscow’s trade with leading partners.

The RT report said that the use of local currencies instead of the dollar in Russia’s trade with other countries had quadrupled in early 2019 compared to the same period last year.

It also added that Russia was moving quickly to ditch the dollar from trade with the European Union countries.

The report comes against the backdrop of efforts by Russia to make its economy immune from the impacts of sanctions and punitive measures adopted by the United States.

Russia has been slapped with rounds of economic embargoes and bans since 2014 when a political crisis erupted in Ukraine, leading to the rise of a pro-Western government in the neighboring country.

Russia and countries like China, Iran and Venezuela, who have suffered from US sanctions, have repeatedly declared that they want to fully ditch the greenback from their economic interactions with the rest of the world.

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