Economist Balynin explained why a complete rejection of the dollar is beneficial for the Russian Federation
Economist Igor Balynin believes that a complete rejection of the US dollar is beneficial for Russia.
It is important for Russia to increase the share of settlements in national currencies with friendly countries.
However, this needs to be achieved gradually, writes Gazeta.Ru, citing Igor Balynin, PhD in Economics and Associate Professor of the Department of Public Finance at the Financial University under the Government of the Russian Federation.
With a complete rejection of the dollar, the exchange rate of the American currency to the ruble will become less important.
Balynin added that the rejection of the dollar is already happening.
Other countries, following Russia's example, are beginning to use their national currencies in settlements.
The creation of the BRICSpay system will help to carry out settlements in national currencies.
The economist also warned that the complete abandonment of the dollar in Russia should be gradual.
Replacing the dollar with another foreign currency could make the ruble dependent on the exchange rate of that currency.
Therefore, Balynin pointed out the importance of currency diversification.
According to the economist, the more different currencies Russia uses in settlements with other countries, the better.
A 100% rejection of the dollar will help the Russian Federation reduce its dependence on fluctuations in the exchange rate of one currency.
