US Dollar-Pound Step aside! Putin Says Will Not Sell, Why?

Russian President Vladimir Putin gave a bad signal to the United States dollar (US), euro and British pound. He hinted that those eyes would no longer sell.

Why?

Speaking at the Eastern Economic Forum in Russia's Pacific port city of Vladivostok on Wednesday, Putin stressed that all three had lost global trust. Russia itself, he insisted, would distance himself from a currency he said was "unreliable and compromised".

"Western countries have undermined the foundations of the global economic system. There is a loss of confidence in the (US), Euro and Pound Sterling as currencies to conduct transactions," he stressed as quoted by Reuters quoted Thursday (8/9/2022).

He said the same thing was also seen from the movement of Western allies. According to him, they began to gradually reduce the use of US dollars.

"Based on statistics, even US allies are gradually starting to reduce their savings and payments in dollars," he added.

Putin's comments also come in response to Western sanctions against Russia. Despite the US and European punishments, he stressed that his country had begun to escape the effects of sanctions.

The statement also came after a day earlier, Russian gas company Gazprom announced it would switch from the US dollar to the national currency yuan and rubles to pay for deliveries of Red Bear's natural gas to China. The Kremlin BUMN called this a solution that benefits both countries.

"The transition was made to make payments for Russian gas supplies to China in the national currencies of the two countries, the ruble and the yuan," Gazprom said in a statement carried by AFP.

"The new payment mechanism is a win-win, timely, reliable and practical solution," added Gazprom CEO Alexei Miller

In yesterday's statement, Putin also alluded to this. He said the proportion of the eyes of the two countries was 50:50.

It is known that Russian energy purchases to India also use their respective currencies. India has paid for Russian oil in rupees-rubles since March.

Citing the BP Statistical Review of World Energy in 2020, Russia has the world's largest natural gas reserves. The amount reaches 37.4 trillion cubic meters

In that year, the world had 188.1 trillion cubic meters of gas reserves. This figure is down from 2019, 190.3 trillion cubic meters.

RI Buys Russian Oil Using Ruble?

Meanwhile, Indonesia is said to be in discussions to buy Russian oil. This was said by the Russian Ambassador to Indonesia, Lyudmila Vorobyeva met yesterday.

He said communication between Pertamina and Russia is still going on. "Pertamina is in contact with the Russian side," he added.

However, whether to use rupiah or rubles, this is still being discussed. He said Indonesia imposed sanctions on Russia so that if Indonesia was interested in buying oil, the payment method would be submitted in negotiations between the two parties.