(PresidentialInsider.com)- Tensions between the United States and Russia have never been higher. After a series of high-profile hacking incidents by Russian criminal gangs, most recently affecting the Colonial Pipeline and JBS, an American meat supplier, the White House told the press that President Joe Biden was considering a response.
And while nothing happened and the United States fell silent, Russia announced that it was planning to completely eliminate the United States Dollar from its National Wellbeing Fund. Instead, the fund will shift to yuan, gold, and Euros, according to an announcement by Russian Finance Minister Anton Siluanov.
China and Russia recently announced a major new nuclear infrastructure deal, so it’s perhaps no surprise that Russia is investing so deeply in the communist nation’s currency.
The transfer will impact roughly $119 billion worth of liquid assets. It will take place within the reserves of the central bank. For many years the Bank of Russia has been slowly reducing the amount of dollars it held in its reserves. That reduction has coincided largely with the introduction of new sanctions from the European Union and the United States, and the decision to remove it completely may be a result not just of tensions rising between the U.S. and Russia but also the dropping of the value of the U.S. dollar thanks to President Joe Biden’s disastrous handling of the economy so far.
Siluanov told the press this week that Russia aims to make the change quickly, and predicted that it will occur within the next month.
Currently, the Wealth Fund holds 35% of its total liquid assets in dollars, with an equal amount in gold, Yuan, Yen, and Pounds.
Once the dollars are disposed of, the assets will be 20% gold, 5% in Yen and Pounds, 30% in Yuan, and 40% in Euros.
If Russia placing so much faith in Euros, the notoriously risky currency introduced by bureaucrats in the European Union to replace the currency of its 27 member states, it is a pretty damning judgment of President Joe Biden’s ability to build the American economy in the wake of the COVID-19 pandemic.