Vladimir Putin wants all CIS member nations to stop using the U.S. dollar and euro. In effect the Russian President wants to create one single financial market between Russia, Kazakhstan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Belarus.
Like any financial asset a currency only has value if there is demand. If countries stop using the dollar its value will fall.
Putin is hoping the trade bloc will help expand the use of national currencies, create greater liquidity and promote macro-economic stability.
Russia is also in the process of creating alternative to the U.S based Swift payment system in a move which will reduce their dependence on the U.S. When completed Russia wants their BRIC partners to adopt the new system.
Is this the start of the U.S dollar being replaced as the world’s reserve currency?