RUSSIA - Removes Dollar from Holdings

K. Farmer

Russia said it will eliminate the dollar from its oil fund to reduce vulnerability to Western sanctions.

The National Wellbeing Fund will shift its dollar holdings into euros, yuan and gold, Finance Minister Anton Siluanov said.

The transfer will take place within the central bank’s huge reserves. It affects about $119 billion in liquid assets, of which about a third is held in dollars.

The move marks another milestone in the Russian leader’s drive to reduce his country’s dependence on the dollar after years of steadily increasing U.S. restrictions.

Russia’s wealth fund currently holds 35% of its liquid assets in dollars, worth about $41.5 billion, with the same amount in euros and the rest spread across yuan, gold, yen and pounds.

After the change, the fund’s assets will be held 40% in euros, 30% in yuan, 20% in gold and 5% each in yen and pounds, Siluanov said.

The wealth fund holds savings from Russia’s oil revenues above a cutoff price and is used to help offset shortfalls when the market falls below that level. Together with illiquid assets, its total value is $185.9 billion. With the economy recovering faster than expected, the budget deficit will be 1% of gross domestic product this year, Siluanov said, narrower than the 2.4% initially planned.

-uk.finance.yahoo.com, 3 June 2021

Commentary

The days when the US could hold economic leverage over most other world powers, through the dominance of the dollar, are fading. Another article we reported on recently revealed how China plans to use digital currency to bypass the dollar. 

One also notices how the euro is the dominant currency in the pool of funds Russia is maintaining, with the Chinese yuan second. That is in line with Bible prophecy, with the continued dominance of Rome (the West), as seen in the fourth beast of Daniel, “After this I saw in the night visions, and behold a fourth beast, dreadful and terrible, and strong exceedingly; and it had great iron teeth: it devoured and brake in pieces, and stamped the residue with the feet of it: and it was diverse from all the beasts that were before it; and it had ten horns” (Daniel 7:7). As often mentioned in our columns, the EU’s motto is “United in Diversity.” That sums up the trajectory the entire world is on, not just Europe. This is all to fulfill, “These have one mind, and shall give their power and strength unto the beast” (Revelation 17:13). (By K. Farmer)

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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