The problems of de-dollarizing the Russian economy

The relevance of the study is determined by the current trends in the Russian monetary policy which implies a deep diversification of the foreign exchange reserves by means of a considerable decrease in the US dollar’s share and an increase in the shares of other international currencies, primarily the euro and Chinese yuan. The novelty of this paper lies in the need to develop propositions reflecting the consequences of the diversification of the Russian foreign exchange reserves as a result of the de-dollarization. The hypothesis that has been tested is that there is an optimal international currency ratio in the Russian foreign exchange reserves which favorably provides the financial stability of the economy in the face of world markets’ turbulence. The research findings may be useful in developing, adjusting, and improving the Russian monetary policy. From the theoretical perspective, the study presents the novel approach to defining and clarifying the category of de-dollarization. It is stated that the substitution of domestic currency for international or reserve one does not necessarily mean an improvement in financial independence of the country in the world monetary and financial system and may involve risks, threats, and prospects for the national economy.