De-dollarization of the russian economy in the XXI century

Abstract

Dollarization is a process of replacing a local currency with a foreign currency as a form of savings, means of payments and measure of value. According to these functions of money dollarization can be broken into three types: fi nancial dollarization, dollarization of payment and real dollarization. The subject matter of this article is the fi rst two types, since there no systematic data or information about real dollarization. We used the loss by the dollar of the position of prevailing form of savings and means of payments in Russia as a criterion of successful dedollarization. To assess the level and speed of dedollarization annual averages and linear trends were calculated in 25 directions of dedollarization. In 24 directions dedollarization proceeded with a trend ranging from –4,2 to –0,8 % per annum. The speed was higher in those directions where the government and the Bank of Russia aimed at reducing the share of the dollar assets and liabilities. In 11 directions the dollar’s share was below 50 %. In 12 directions the dollar remained an absolute leader. Here the role of the dollar was defi ned not so much by the authorities as by households, banks, and non-fi nancial fi rms on the basis of their perceptions of which currency is the best form of savings,balance sheets and payments. At the time of completion of the article, the statistics available to the author did not take into account the impact of the special military operation in Ukraine.