Russian Government Preparing Incentives To Transfer Currency Liquidity From Dollar To Euro


Russian Government Preparing Incentives to Transfer Currency Liquidity From Dollar to Euro

MOSCOW (UrduPoint News / Sputnik - 07th June, 2021) The Russian government is preparing incentives to transfer all the Currency liquidity in the economy from Dollar to euro, directives for state-owned companies could be issued, Dmitry Timofeev, the head of the Russian Finance Ministry's department of external restrictive measures control, announced on Monday.

"Our goal is to make Russia a euro-oriented country, so that the dollar is replaced by the euro, and I think we have every reason for this. This will also apply to the liquidity of currency exchange, and so on. But incentives are needed for this, so we support the proposals on the use of such incentives ... There may be different incentives, but since we are a market economy, we cannot just order: stop using dollars," Timofeev told Russia's lower house lawmakers.

"There may be positive and negative incentives.

In principle, directive methods are possible for some state-owned companies, so much complex work is needed to move the entire economy further away from the dollar, which, in fact, will allow us to avoid sanctions and make the world more democratic," Timofeev continued.

According to the finance ministry's official, the dollar currently accounts for 80 percent of the currency exchange on the Moscow Stock Exchange, the euro accounts to less than 20 percent, and the Yuan and other currencies are completely non-liquid.

"So, we have information that some large organization, having received earnings in Euros in Europe, which is our key trade partner, converts euros into dollars, brings Dollars here and sells them here for rubles, respectively, because they need rubles. Actually, we have not gone anywhere from the dollar," Timofeev explained.