In the report that to china actually joins hands was rushed to, uh, you know, to, to make for the month months. But again, the amendments was not accepted by the other members. So this exactly shows where we are today was major issues. Uh, i think this is the world and this is todays weld, but we have to face it. Alright, we have to leave you here. Now is thank you so much, vice chairman of the strong hi sent the full ring pack and international studies. Nelson wong or thank you. Thats right. Just how crippling have the bill was supposedly crippling, west and functions being on russia is the. Busy hold on one way ticket to the dolores nation and how will the economy all the breaks group grow. Weve got exclusive insight into all of this when we sat down for an interview with russian senior banker at the big the, our f sort of a sort of jack, who also one such as the russian deputy, administer of finance. Once that next the, the 2024 is the year of process chairmanship and brooks. Some of you may have heard that besides brazil, russia, india, china, and south africa. The organization now has new members such as egypt, iran, you opiate, and the united arab emirates. So this isnt an easy time for growth, and yet brooks seems to be steadily moving forward. Today i have the privilege to speak with the senior banker address of the state Development Corporation v e v r f. Sir, you start check about bricks, sanctions, the declining role of the us dollar and what lies ahead for the economies around the globe. So again, i think its just something that someone up to design with. So again, until you each one of the most to discuss topics is the possible confiscation of russian assets by the west. American legislators are discussing transferring these funds to ukraine. You will be in union, theyre discussing transferring any profits from the pros and funds to key if these are radical, unprecedented measures. But does this mean that essentially all other sanctions have failed and how can rush or respond . Ive seen much of significant village. Well, let me start a bit from a fall off. I agree that its likely the most discussed topic, perhaps, except for everything related to conflicts. My suspicion is but extreme decisions related to compass station simply cannot fail to have a negative impact on the central bank. Internal policies related to placing temporarily free funds. What will be written that will out sufficient restrictions be introduced, or some limit set that its hard to say, but its a historical fact. We have a completely new situation related to such actions. All economic entities, particularly the back v t b, have taken steps towards the legal aspects and of trying to protect and secure the assets. I think this is the path we will take. We will see what has accumulated here in the russian federation, in terms of assets of developed country, economic entities, while assets of russian economic entities to be seized. So i guess we will go down this path is quite difficult for me to speculate told miss mathis, since im fall from these processes. But in any case, experience will definitely be considered by many of the economies of developed countries to acts more cautiously with the western financial system. We perhaps when moving towards creating an alternative financial system, its not about finding the dollar or Financial Institutions of different countries, but having an option, having the right to choose a menu of choices. Everything points to a situation where instead of one International Financial system, we will have more, maybe an alternative, maybe even a, not just one all the time to save of knowing my share of view with others that globalization as a dominant phenomenon, is beginning to recede and regionalization has become the dominant trained countries within a region of forming global markets. And within these markets there already establishing that local payment and settlement systems, enabling economic entities to trade most smoothly and flexibly with each other. I dont know, like, what, like, what kind of shows up in the sense the why do things are so many western sanctions and why have they not succeeded in crippling the russian economy despite all of those predictions, by so many western officials, did they all know this would happen from the very beginning and were simply following washingtons the n t rush an agenda or did a general where you come as a big surprise to them. I mentioned this list and this is it. Well, we want to mention the causal relationships that threatened us with bit some basis. My point of view is very simple. Russia has a large economy, the more its a diversified economy, no matter how much we say we depend on natural resources, primarily oil and gas, which constitute almost off of the federal budget. Revenues from the sale of those results is, is now evident in the 21st century that we rely no, certainly on the oil and gas sector. But also on many of the industries that have stood on their own. 2 feet of coast, primarily agriculture, whose export performance has been mentioned as a splendid result of cheap by the government in recent years. This includes the Banking Services sector in terms of quality, speed of service and the capabilities provided by the Banking Sector. Today we seems to be far ahead of switzerland. I havent been to europe for a long time, but they say that such financial transparent payments, we easily make every time using smartphones, phones or q all codes a quite rare in europe. Whereas here we have from my diversification perspective, at least 3 strong pillars within the country. And these pillars have proven that viability, theres no comparison with how the Banking Sector operates in these conditions and how we operate it off to be nice and not a crisis. When we regressed and started carrying caching out pocket, and of course the industry related to the military Industrial Complex to show that it can quickly restore production, leading to Strong Demand for a variety of products, driving developments on the pool. Essentially we largely rely on this them on these metals rate of elements, electricity, and demand for labor, which is also in short supply. I believe all this has ensured resilience to external pressure. Although i also believe one should be fairly restrained in assessments as 2 years of such caution sanctions. And its such a large economy, its still a relatively short period of time. Looking at a longer term perspective, especially considering the great desire to undermine our financial system. We need to be, i would prefer ever straightened evaluation of our resilience. This is what is called resilience in english, not sustainability, but specifically resilience resilience to external pressure economy. Numerous enterprises have shown that we can do this, but lets continue to observe weights and prepare personnel just like in the past past, and ill make all the difference that the current stage. Thats my point of view. I understand its from the lines with what the government is county saying and dreaming of in terms of retraining. The masses of the go as it should be waiting for the board. Lets briefly discuss the dollar according to i am at the data last year. Its sheer and global currency reserves to decrease to 50. 31 percent the lowest in 20 years. Do you believe this trend will continue considering the sanctions policies and the growing u. S. National debt, which this year is set to exceed spending on defense and can do you want strength and under these conditions, i think i might have to do it towards the dollar is security. I think perhaps is an exaggeration, but the dollar is like impacts. Its like a 2 person, everyone says get rid of a dollar, blaming the dollar, everything was the fault of the acts. If its use not to chop wood, but its set to shop heads. It all depends on who wields that. The problem is that the financial system, even systems related to transactions to a greater extent, so called financial infrastructure and its key elements like clearing houses, central accounts, of policies, central deposit trees, but especially correspondence accounts. Those are all controlled by authorities and authorities through the supervision mechanisms. Potential oversight regulation will sippy through legal means issue relevant instructions and Compliance Services of Pacific American banks, which process dollar payments comply with these instructions for them. If they dont comply, then they should be penalties. The old a legal entity, the bank itself, west of all, ill send it affects the specific individual, like a credit or payment officer, making those decisions. The problem isnt with the dollar. Its in the financial infrastructure. More precisely, and how the financial infrastructure is utilized for political purposes. As for this indicates a well, the share of the dollar in International Reserves has decreased. Yes, but thats not the most important factor regarding the dollar is influence on the Global Development and Global Financial system. I liked the category introduced into circulation by the former governor of the bank of england monk connie. Ive known him for a long time. Weve had many discussions sort of, he started using the term dominant cover and say, thats the key points dominant. People try to coordinate Something Else like the primary most important or Something Else. Reserve currency is understandable. Besides the dollar, we also have revenues in your its chinese young and japanese. Yeah. Now, but in terms of quality, the main dominance of adults lies in the fact. This cards is the basis for pricing, especially for commodities on exchanges. And at this stage, its impossible to move away from this. At least we have one good example when a trend began with the use of futures on the Shanghai Commodity Exchange denominated in the National Chinese currency. This is a significant step towards reducing the dominance of the dollar. From my perspective, this is much more important if we want to come back this dominance, then decreasing the dollar share of International Reserves. If this trend accelerates, thats one scenario. But we know, for instance, the chinese authorities on pushing for the international lives ation open National Currency. For instance, just recently in the vent representatives of india mentioned that that goal is to internationalize the indian currency as part of the state policy or agenda. While i havent read such statements related to the peoples republic of china. Moreover, in order to exert significant influence to enter this international circulation, bits of payments, such a months reserves or any other purpose, you need to have a trade deficit over time. Your money, it needs to flow out of the country, creating demand for its similar to what happened. Post world war 2 with the american dollars. It long, she became what it is because of a position us balance of payments deficit and the accumulation of dollars in the year i started accounts. I understand that the peoples republic of china is not ready for that because of the questions about trade surplus and consequently a surplus with the balance of payments all the priority for peoples republic of china. I see these rush are ready to move away from the dollar and how advisable in these, what was the, what would be needed for this to happen to, you know, smother you do what is this not the framing of the issue here . Should be old, new wants to often roll russia as a solver. An entity practically does not engaging across the board of money transfers, except when perhaps we have placed the bones boned obligations in numbers of currency or have been false to repay and service the participants in currency relations or across the board of financial flows. Economic entities. This is the fundamental basis for understanding the situation. For many of our exposes and import is abandoning the use of the dollar does not entirely fit into that commercial strategies. To put it mildly therefore, in the absence of pressure from below. No one will certainly go down the path of banning the use of adult that if your text by it generates value added x bolts and believes that its more important to receive compensation for his expenses. In this particular currency, no one will heading to him. So how can brush of refused to this is to abstract, right at the arrested goal thoughts . I think we need to come down from this perspective. The main participants in cross board of money flows, all economic entities, not separate entities. They genuinely care about their business, their profits, and if its beneficial to them, they will never refuse. They will continue to do what they do. I want to, can you please explain in simple terms of what and you can nomic entities more to prepare to enterprises of various legal forms. It could be a cooperation or trading company, a commercial bank or a non banking commercial organization. All those who state and that funding documents a goal of making a profit. Ill consider economic entities to me. Id like this category. It is the most encompassing. This includes both large and small enterprises, trade, industry, transportation, and services of all kinds. These are you can only against these even an individual entrepreneur and like a plumbing in all case, hes also, i wouldnt even know him again say, well, if he pays taxes, thats good. Oh, if hes getting a license, now basically what is the store . So you were saying that the actions of all these legal entities depend more on them and then on the authorities. And of course, at least the government will never allow itself to go against the interests of economic entities. Bots. If the government was to take that route, then who would form the tax space . Who would pay taxes . If theres no profit, what would you pay from . Thats why we have a system when no presentations are in place. And in Russias Central Bank government, mister w and my, my opinion, has repeatedly stated that there are no restrictions on operations involving of reserve currency nor any plant. Moreover, as far as i can judge from the press, if the Government Supports extending the period for a mandatory sale of foreign currency earnings illiterate today, yesterday there was information then the central bank believes that the time has come to a bullish. Theres no, well everyone has to own arguments, the government has its arguments. The central bank has 8, sorry, i want to comment on whos right or wrong here, but the period of a fairly stable rouble. It happened. We live with it forever. Yeah. I believe that citizens are mostly satisfied, the responsibility predictability in how the Ruble Exchange Rate changes relative to reserve currencies. Its just never the less that i totally operations and National Currencies between wish and china, almost entirely avoiding the use of the dollar and euro in bilateral trade because something similar happened with in bricks yesterday. But some of the data, if we look at the trade flyers, it presented in india, these are trade flows that rely on the dollar. And to assume that again, those same economic entities, all these jurisdictions will decide today that is not interesting, not profitable, and not necessary. Is it very difficult for me to, although at the event we had, its called the breaks into bank corp mechanism partners in this club, United Development banks of 5 countries would hopefully find more institutions joining us together. They say, lets still look at how we will stimulate settlements in National Currencies, even most, im not just settlements, but financing investment projects, a National Currencies or. But this is very logical because if you implemented project in a specific jurisdiction, its expected that if your project is successful, the sailor products from this blog will fight rates will be a National Tire and seized accordingly, paying off the credit. Attracted for this project will be easy and the topic of course, always sounds like how to meet the demand for National Currency for an economic entity from a foreign country, how they have access to the National Financial market. How open it is. We are advanced in this sense, but all markets wind breaks a not yet deep and diversified enough for these operations to run smoothly enough. The main advantage of americans live precisely in this, a huge, deep market with different participants. And most importantly, different opportunities and financial aids from a disciplinary there all kinds of them have. This is something we still have to do within the brakes union. I think a one thing is when you have come and board is have the opportunity to form joint projects when economic entities from 2 countries participate. Thats one situation. Like what happened with china to joined production, export and import contracts that understandable how they implemented, how they have funded. And the other thing is trading with south africa or trading with brazil where they have completely different logistics completely different supply demand regarding investment goods. But simpler, withdrawal materials and Energy Results is now when it comes to industry here, there are different standards, different measures related to Technical Compliance and so on and so forth. One of your questions was about forming a customs union. I think that in the near future, within breaks this is simply impossible and what they usually 1st comes the customers union, then we move on to a free trade zone, as was the case in the razor need, you know, my union. There is a certain sequence here, can you imagine how many economic and commercial ties and needed the business pressure from below to full . So authorities to engage in this way, i can form the corresponding agreements which should be Multi Lateral, not by latrell, but Multi Lateral. I would prefer it more if with