The Kremlin has been working overtime to make the Russian economy as ‘sanction proof’ as possible. This agenda was most likely behind the significant reduction of U.S. Treasury holdings in recent months, as Moscow looks to prevent consequences from any further American financial penalties, which Congress or the administration may impose.
Obviously a big part of the strategy is to reduce any impact of Russia being removed from the global ‘USD’ financial system, set up since the end of World War II. Moscow and Beijing specifically are working together to remove the dollar from their global trade transactions. The current American sanctions being reimposed on Iran show that dollar hegemony is still alive and well. Tehran is now cut off from trading in important commodities due to their trade being conducted in dollars. (Read more….)