Russian President Vladimir Putin: Weaponizing the Dollar Was a Grave Mistake
Russian President Vladimir Putin believes that the weaponization of the US dollar has dealt a serious blow to America’s global dominance. In an interview with journalist Tucker Carlson, Putin emphasized that the dollar is the foundation of America’s power. However, he argues that freezing dollar-denominated assets owned by Russia’s central bank and wealthy individuals in response to Russia’s invasion of Ukraine has damaged this foundation.
Putin asserts that using the dollar as a tool of foreign policy is a strategic mistake made by US political leadership. He argues that by doing so, the US has jeopardized its own power and caused concern among other nations about the safety of their dollar reserves. The restrictive measures and sanctions imposed by the US have led countries, including its allies, to downsize their dollar reserves and seek alternative ways to protect themselves.
Impact on Global Reserves
The consequences of weaponizing the dollar are evident in the actions of central banks worldwide. In 2022, Russia’s Finance Minister reported that the US and its allies had frozen $300 billion worth of Russia’s gold and foreign exchange reserves due to sanctions related to the conflict in Ukraine. Additionally, a report from UBS stated that central banks were hesitant to increase their US dollar reserves following the weaponization of the currency.
China’s Influence
Putin also highlights China’s role in challenging the dominance of the US dollar. He notes that China has convinced oil-producing nations to accept yuan as payment for oil, signaling a shift away from relying solely on the dollar. This move could further undermine the position of the US currency in global transactions.
A Warning
Putin warns that America is cutting itself off from global influence by undermining its own currency. He urges the United States to recognize the consequences of its actions and emphasizes that experts and intelligent individuals within the country acknowledge the importance of the dollar. Putin’s remarks serve as a cautionary message about the potential long-term implications of weaponizing a global reserve currency.
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