Economic News

De-Dollarization continues as Russia to end use of dollar at all their seaports

The global move to end the uni-polar reserve currency known as dollar hegemony is continuing to grow at a rapid clip as on Sept. 19, Russian President Vladimir Putin is pushing parliament to no longer accept the dollar at all seaports under Russian control.

As with many international ports of call such as airports which require air traffic controllers and pilots to communicate in English, sea ports very often facilitate the allowance of dollar transactions since it is recognized as the global reserve currency.  However with more and more countries choosing to ditch the dollar for their own sovereign currencies, this move could be the next step leading up to the elimination of dollar requirements in future trade and letters of credit.

Russian President Vladimir Putin has instructed the government to approve legislation making the ruble the main currency of exchange at all Russian seaports by next year, according to the Kremlin website. 

To protect the interests of stevedoring companies with foreign currency obligations, the government was instructed to set a transition period before switching to ruble settlements. 

According to the head of Russian antitrust watchdog FAS Igor Artemyev, many services in Russian seaports are still priced in US dollars, even though such ports are state-owned.
The proposal to switch port tariffs to rubles was first proposed by the president a year and a half ago. The idea was not embraced by large transport companies, which would like to keep revenues in dollars and other foreign currencies because of fluctuations in the ruble. 

Artemyev said the decision will force foreigners to buy Russian currency, which is good for the ruble. – Russia Today

Source: The Daily Economist