ISMAIL LAGARDIEN: The rouble will not replace the dollar as global reserve currency
The US may well be in decline but Putin does not seem to understand the complex global financial architecture
Vladimir Putin’s attempt to use the rouble in international transactions is the first serious bid to replace the US dollar as the global currency. Russia’s move was, of course, spurred on by the decision of the US and its allies to freeze Russia’s foreign reserves.
Last week, Putin said “unfriendly” countries would henceforth be required to pay for Russian gas in roubles. His remark sparked debate about the future of the global monetary system. But there is no need to “wait and see” whether the rouble will replace the dollar as the global reserve currency. It will not. It’s more likely that the renminbi could, but that is probably at least 10 years away...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.