Putin comments on dollar usage limits and global reserves
Russian President Vladimir Putin voiced strong criticism of the United States over its decision to curb the dollar’s use in countries seen as unfriendly. In a wide interview conducted with journalist Pavel Zarubin for the television network Russia 24, the president argued that restricting the dollar complicates financial calculations for Moscow and its trading partners. He proposed a shift toward an alternative currency that is widely accepted in international trade, highlighting the Chinese yuan as a practical option, especially given its growing role within global institutions like the IMF.
Putin asserted that the U.S. measures against Russia have harmed the country and left a lasting impact on Russia’s finances, describing the consequences as a “kick in the teeth” to Moscow. He claimed that Washington froze Russia’s gold and foreign exchange reserves, a move he said undermines the credibility of the United States in global markets and raises questions about the reliability of using the dollar as a reserve asset.
In relation to this topic, reports from The New York Times were cited by the president as noting that confiscating Russian assets might erode confidence in the dollar, which could influence other countries to reduce their dollar holdings and slow investment flows into the United States.
Earlier, Bloomberg reported that the European Union has faced ongoing difficulty in locating or freezing many assets tied to individuals who face sanctions from Russia. The article noted that the total value of these frozen assets hovered around €21 billion, with only modest increases observed in recent months.
These statements come amid a broader debate about how sanctions, currency diversification, and asset freezes impact the stability of international finance. Observers say such developments push states to reassess the dominance of the dollar in cross-border trade and to consider alternative settlement currencies or diversified reserve baskets. The discussion also touches on the potential risks and advantages for major economies as they navigate sanctions regimes and shifts in global liquidity.