open an account Login
+44 20 3514 7204

VTB BANK SHOWED A DOLLAR REFUSAL PLAN

30.01.2019 12:00
news_image

Head of VTB Bank Andrei Kostin recommended a gradual decrease in the use of the dollar.

For a start, it is worth canceling all settlements in dollars between the Russian Federation and other states and changing to another currency unit. Kostin said that the ruble, the euro and the yuan are best suited for the settlement currency.

Then they should change the registration of national companies to legal addresses. Kostin made this decision based on the experience of Russian companies that were in the list of new US sanctions. He believes that the foreign registration of the company prevents the solution of many tasks.

The next stage is to place European shares on the Russian stock exchange. It is also needed to abandon the initial trustee, which is the company Euroclear (world non-cash payment system), in favor of the domestic counterpart. Moreover, the head of VTB Bank offered to make a license for all participants of the stock exchange, so that their work was carried out under the same conditions.

A complete rejection of the dollar will be a necessary measure for Russia if the United States proposes a policy where the US currency will act as a weapon, Kostin says. This project will take a lot of time, so it’s worth taking action today, he added.

Opinions of experts in this matter differed. For example, Nikita Krichevsky, a financial analyst, doubts the possibility to completely abandon the dollar if the course constantly jumps. He believes that such actions will lead to a problem of payment of exchange risks.

But the expert of the economic center of RISI, Nikolay Troshin, states that such a decision should be made as soon as possible, and not only as a response to US sanctions, but also as means to develop the economy.European countries that are thinking about the stability of their currency can support Russia's refusal from the US currency. Shortly before this, the head of the European Commission, Jean-Claude Juncker, recommended an increase in settlements in euros. By the end of this year, the European Commission plans to strengthen the euro in foreign trade.