US dollar. File photoMOSCOW, March 19Western sanctions against Russia could push other countries to abandon foreign exchange reserves in dollars and euros, Neil Kimberley, an expert on macroeconomics and financial markets, wrote in an article for the Chinese newspaper South China Morning Post. The observer noted that in recent years Moscow has sought to limit its reserves in dollars, and the Central Bank paid attention to building up positions in euro, gold and yuan. In his opinion, the decision of the US and the EU to freeze Russia's foreign exchange reserves has become an «unhealthy» precedent that requires accelerating the pace of reserve diversification in the world.
"Western sanctions that cut Moscow off from its foreign exchange reserves give China a powerful incentive to to abandon the dollar and the euro, and may encourage other countries to follow suit", says Kimberley.
The author of the publication suggested the rise in popularity of the yuan as a reserve currency.
The ruble continues to rise against the dollar and the euro for the seventh day in a row «Beijing may also consider it expedient to further diversify China's foreign exchange reserves, which now amount to 3.2 trillion US dollars,» the expert concluded. On February 24, Russia launched a special military operation to demilitarize and denazify Ukraine. In response, the West announced new anti-Russian sanctions. Several major banks, including Sberbank and VTB, have fallen under them, many state-owned companies have difficulty in attracting foreign capital, and restrictions have been introduced on the supply of high-tech products to Russia. The EU, the US, Canada and other countries have closed the skies for Russian aircraft. Presidential spokesman Dmitry Peskov said that the sanctions are very serious, but Moscow was preparing for them in advance. He also noted that analysis and coordination of departments is required in order to develop response measures that are in line with Russia's interests. dealt a serious blow