... as a reserve currency. What does this mean for the global economy, currency markets, and investors? Find out how central banks are rethinking their strategies and where this will lead. Dedollarization of Global Finance: Reducing Investments in U.S. Government Debt Recently, global financial systems have been experiencing a significant shift: foreign central banks have begun actively reducing their investments in dollar-denominated assets, particularly U.S. government debt. According to Asia Times, this phenomenon ...

... term). Their downsides include the need for term fixation and relatively high inflation, thus yielding modest real returns over a 2-3 year horizon. They are ideal for the 'core' of a portfolio or as a 'safety cushion.' Bonds: Government and Corporate Government Bonds (OFZ) Yield. Federal loan bonds (OFZ) are the most conservative debt instruments. The yield on current OFZ remains high: for example, the OFZ index with a duration of 5–10 years (RGBITR10Y) achieved a historical maximum cumulative yield of around 15% per annum in 2024. A broader index (RGBITR) peaked at approximately ...

... everyone. Speed of payment. Returned funds are typically disbursed on the day of the request. Investors do not need to pre-order the amount or deal with endless excuses. The withdrawal is made in full upon first request. According to statistical data, OGVZ debts have never been restructured in any civilized country around the globe. This lack of action is detrimental to the government and could significantly harm its reputation. Delays or refusals in OGVZ payments could destabilize state banks and the entire banking system of the country. It is also important to note that financial monitoring agencies may require investors ...

... and allowed for the possibility of further rate cuts if current trends persist. Markets reacted ambiguously to the CBR's bold decision. Bonds saw an influx of buyers: OFZ yields fell on expectations of cheaper funding, increasing the attractiveness of government debt. However, stocks on the Moscow Exchange showed mixed dynamics throughout the day—several rate-sensitive sectors (such as energy and consumer sectors) received a boost, while bank stocks declined due to expectations of shrinking interest margins....

... are forced to review their strategies, adapting business models to new realities. This may include optimizing costs, reducing debt, and actively working to improve financial performance in order to remain attractive to investors even in difficult conditions.... ... placing in order to attract interest. However, such conditions may reduce the number of companies ready to go public. Potential government support measures. To stimulate the market, the government may consider various support measures, such as interest rate ...