1831
Putin: Russia Will Remain Open Economy
World Economy

Putin: Russia Will Remain Open Economy

Russian President Vladimir Putin pledged that the country would continue to develop as an open market, but fired a broadside at the US by halting the use of the dollar for trade.

Putin’s promise to keep free movement of capital was seen as a signal that Russia’s relatively pro-market economic “liberal” faction has gained the upper hand in the struggle for control of the country’s moribund economy, CNBC reported.
His pledge to start using “national currencies” rather than US dollars, the world’s reserve currency, for trade, may be more significant in the long term. If Russia (and possibly China, with which it has just signed a $400 billion, 30-year gas deal) stops using dollars, this might have a broader effect on the US economy.
“In the future we aim actively to use national currencies in energy resources trade to settle... international trade accounts, with China and other countries,” Putin said.
After days of speculation that Russia may impose capital controls or make other anti-free market measures, Putin reaffirmed the government’s commitment to develop as an “open market.” He told an audience of business leaders in Moscow that the government would not impose controls on the flow of money in and out of the country, or on currency movements.
Putin pledged to stick to the standards of the World Trade Organization - but could not resist the suggestion that other members (i.e. those Western companies which have imposed sanctions against Russia) are not. And he promised government help to the companies and industries targeted by sanctions.
Since Russian economic growth began to falter this year, after investments were pulled from the country and economic sanctions enacted following its clashes with neighboring Ukraine, there has been widespread speculation that hardliners in the administration, led by President Vladimir Putin, may use short term stimulus measures to negate the effect of external factors.
Putin dismissed concerns that Russia’s development was heading in the wrong direction as top officials sounded the alarm over the economic outlook.
He said a combination of high inflation and low growth was “explosive” and the head of the country’s largest bank warned that Russia could repeat the fate of the Soviet Union.
Putin chose to make light of the doom-and-gloom predictions, pledging that Russia would remain an investor-friendly economy and ruling out capital controls or any major revision of privatizations.

Short URL : http://goo.gl/BcJIzs

You can also read ...

Philippines Rating Upgraded
Fitch Ratings on Monday upgraded Philippines’ credit rating to...
Beijing’s growing determination to curb debt-financed growth has already triggered a sharp sell-off in China’s government bond market and is fuelling concerns that the economy will slow, thus crimping global demand for commodities.
Inflows into emerging market bond and equity funds have been...
UNDP Says BRI Can Create Sustainable Growth
The Belt and Road Initiative has tremendous potential for...
Hackers Hit Major ATM Network
A previously undetected group of Russian-language hackers...
Diverse Views Fuel Bleak Prospects for WTO Meeting
The World Trade Organization’s Buenos Aires meeting commenced...
Will Cryptocurrencies Replace Dollar in Oil Trade?
The gradual acceptance of digital currencies, with major...
Base metals remain vulnerable to market factors.
The market for base metals is projected to grow at a robust...
Cboe tweeted that nearly 1,000 contract trades had been placed after two hours of initial trading.
Bitcoin has landed on Wall Street with a bang. Futures on the...

Trending

Googleplus