ST. PETERSBURG, June 17. /TASS/. Dollars and euros are losing their value and they will inevitably be replaced by real assets, Russian President Vladimir Putin said speaking at the St. Petersburg International Economic Forum (SPIEF) on Friday.
"Why exchange goods for dollars and euros, which are becoming less reliable? This leads to the conclusion: the economy of imaginary entities will inevitably be replaced by the economy of real values and assets," Putin said.
He added that the global foreign exchange reserves, according to the International Monetary Fund, include $7.1 trillion and 2.5 trillion euros.
"This money is depreciating at a rate of about 8% per year. Moreover, at any moment it can be confiscated or stolen if the US does not like something in a particular country's policy," Putin stressed.
In this situation, the countries around the world will inevitably start converting their foreign currency reserves to real assets in the coming years, which will send dollar inflation soaring, Putin said.
"According to experts, the conversion process of global reserves will be launched in coming years," he predicted, adding that countries will convert devaluating currencies to real resources like food, energy and other commodities. "This process will obviously push global dollar inflation even higher," Putin added.
The Russian leader also said that in Europe failed energy policy made an additional negative contribution to the unwinding of prices.
"They blindly gambled on renewable sources and spot supplies of natural gas. This led to a sharp spike in the cost of energy, which has been observed since the third quarter of last year. Long before the start of our operation in the Donbass. We have absolutely nothing to do with it," he stressed.