Economy: Russia secretly raises $2.3 billion in cash under the eyes of the West
Wednesday, August 14, 2024 ▪
3
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In a tense geopolitical context, the Russian economy shows continued dependence on the dollar. Despite the ban on currency exports, $2.3 billion in dollars entered Russia.
Under Sanctions, Russia Secretly Raise $2.3 Billion
While Russia has been in the headlines recently following the devaluation of the Libyan dinar, which the Libyan authorities attribute to a wave of counterfeit banknotes of Russian origin, Russia once again finds itself at the center of media attention.
the Customs data Reuters analysis shows how sophisticated Russia's strategies are to maintain its cash flows.
Indeed, $2.3 billion in cash was sent to Moscow. Turkey and the UAE, which are not participating in the sanctions, play a major role in this circumvention. These countries act as bridges to deliver currencies, exploiting loopholes in the global financial system.
What is more interesting is that the origin of more than half of the banknotes remains unidentified in customs data covering the period from March 2022 to December 2023.
The continued attraction of the dollar in the Russian economy
Ironically, while the Kremlin encourages the use of the Chinese yuan, the Russian people remain attached to the dollar and the euro. Dmitry Polevoy, a financial expert at Astra Asset Management, confirms this fact: For individuals, the dollar remains a reliable currency.. »
This stubborn preference for Western currencies reveals a gap between official strategy and Russians’ daily practices. The inflow of foreign exchange responds to strong domestic demand, especially for travel and savings.
Russia’s economic diversification efforts extend beyond traditional currencies. President Putin’s recent legalization of Bitcoin mining opens up new avenues for circumventing financial hurdles.
In addition, Russia assumed the presidency of the UN Security Council in July. Foreign Minister Sergei Lavrov took the opportunity to advocate a “multipolar world” and efforts to “eliminate injustice at the heart of the global economy.”
This diplomatic stance is in line with the goals of the BRICS group, of which Russia is a member, to reduce the dominance of the US dollar in the global economy.
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