Over the past month, the Russian ruble has fallen 16.48% against the US dollar as energy and commodity prices have slowed in recent weeks. Two weeks ago, Russia’s central bank made it clear that it would further distance itself from its dependence on the US dollar by buying Chinese yuan on the foreign exchange market. At about the same time, on December 21, 2022, Sberbank executive and Russian International Affairs Council (RIAC) member Yaroslav Lisoborik issued an opinion piece talking about exploring a path to a new BRICS reserve currency.
Russian Central Bank to Reduce Dollar Dependence by Purchasing RMB
At the end of July, Bitcoin.com News reported on Russian President Putin’sannouncement at the June BRICS summitof a new reserve currency for the BRICS countries Putin’s plan to create a new reserve currency for the BRICS nations, which he announced at the June BRICS summit. Although it was a hot topic at the time, the BRICS reserve currency was not discussed for some time. A few months later, in October 2022, Robert Kiyosaki, author of the best-selling book “Rich Dad, Poor Dad,” addressed the topic and noted that the US dollar was “doomed.” Over the past 30 days, energy prices and commodities have fallen in value, but some economists expect oil prices to rise by $200 per barrel at some point in 2023.
While energy and commodity values are falling, the Russian ruble is also falling against the dollar. Statistics show that the ruble has fallen 16.48% against the U.S. dollar over the past 30 days, while the ruble is up 1.72% on a five-day index. Year-to-date statistics show that the Russian currency is up 5.37%
over the past 12 months. Meanwhile, at the end of December 2022, Reutersreportedthat Russia will purchase Chinese yuan on the currency market in 2023. Elena Fabritinaya, a reporter quoted by two sources as saying that Moscow’s move would open “a new front in the de-dollarization movement, which will accelerate to reduce dependence on Western finance.”
Sberbank analysts discuss the possibility of a BRICS reserve currency to complement national currencies
The day before, on December 21, 2022, Yaroslav Lissoborik, a member of the Russian International Affairs Council (RIAC) and head of Sberbank’s analysis department, published ablog post titled “Exploring Pathways”in which he discussed the proposed BRICS reserve currency. Lissoborik states that “the BRICS reserve currency has taken on particular significance in recent months,” in response to Russian President Vladimir Putin’s statement.