Russia’s central bank said on Tuesday that the role of the dollar and the euro as global currencies would decline as central banks rethink their strategies after the West froze Russian reserves, suggesting it could consider imposing negative rates for dollar and euro deposits.
Unprecedented Western sanctions have frozen around half of Russia’s gold and foreign exchange reserves, which stood near $640 billion before Moscow started its military campaign in Ukraine on Feb. 24.
The Bank of Russia said this precedent along with discussions about a possible seizure of the frozen part of reserves would prompt other central banks, primarily in Asia and the Middle East, to rethink strategies for their savings….