Russian President Vladimir Putin on Monday said the process of de-dollarization of the global economy is inevitable, as Russia and China look to break the dollar’s dominance by trading in their own currencies.
Speaking at a meeting in Moscow with his government officials, Putin suggested discussing Russia’s budget for the next three years, “which has to be focused on development, implementation of major infrastructure projects, and stimulating economic activities”, state media reported.
“There are disputes about what to pay more attention to, where to direct more funds or (whether it is better) to save more and create a safety cushion, how to create it in new conditions and what is a ‘safety cushion’ in modern conditions, when we have a well-known and inevitable process of de-dollarization,” he said.
Putin stressed that Russia confidently copes with external pressure that he calls “financial and technological aggression by some countries.”
He noted that the government promptly implemented effective protective measures, launched mechanisms to support key industries, system-forming enterprises, as well as small and medium-sized businesses.
All measures are aimed at preserving employment and jobs, as well as providing targeted assistance to Russian citizens, especially to families with children, and pensioners, he said.
“As a result of the implementation of this set of measures, we did not allow a sharp decline in the economy. Inflation was also quickly stabilized. After a peak of 17.8% in April, it dropped today to 14.1%, as of September 5,” he said, adding that the inflation will be around 12% by the end of the year.
The monthly dynamics of key indicators also suggest that the Russian economy is gradually stabilizing, leveling off, and entering a growth trajectory, with enterprises returning to the normal rhythm of work, according to the country’s statistics.
The president also said responsible macroeconomic policy pursued in previous years paid off in crisis, and now the state of the Russian budget is much better than those in the economies of the G20 and BRICS countries, and so it is necessary to follow this line further.