- The Russian economy's industrial sector is in decline, according to air-pollution readings from satellites.
- A Wall Street Journal report showed that the decline may be worse than what Moscow officially reports.
- Pollution in Russia's industrial regions fell 1.2% in the six months to April, and is 6.2% lower annually.
Russia's economy is suffering from an industrial decline as Vladimir Putin's war in Ukraine drags on, according to a Wall Street Journal report citing data from the European Space Agency's Sentinel-5P satellite.
The bird's eye view on Russia — courtesy of the Troposphereic Monitoring Instrument, which detects gases like nitrogen dioxide, ozone, methane and more — shows that the volume of air pollutants emitted by the country's factories has declined.
Analysts have grown increasingly skeptical about official data coming out of the Kremlin, and the government limited what data is released to the public since Russia invaded Ukraine last year.
Still, the satellite data offers a picture that cannot be easily obscured.
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The Paris-based research firm QuantCube works with the ESA to analyze the data, and it tracks specifically the amount of nitrogen dioxide in the air, which is a signifier of the amount of gas, diesel, and coal being burnt.
Over the last six months, the readings show that urban pollution in Moscow and St. Petersburg has ticked higher. But pollution in industrial regions has fallen 1.2% in the six months to April, and is 6.2% lower year over year.
By contrast, Russia's government data showed industrial production climbed 1.2% for the year up to March.
Additional satellite data shows that the automotive sector, construction, oil and gas, and even the defense industry are emitting less pollution. Meanwhile, the thermal power and metals industries are polluting more.
ECB economists Adrian Schmith and Hanna Sakhno have also incorporated satellite pollution data as part of their alternative tracker of economic data for Russia. Sakhno previously told Insider that GDP data coming out of the warring country has covered up the slowdown in the private economy.
"This is visible in our alternative tracker of domestic economic activity: Retail sales have been down, a plunge in domestic flight purchases, and stagnation of the housing market," she said. "These are the things that businesses deliver and consumers purchase in an economy, and they have been absorbing the impact. Our tracker shows a contraction of the Russian economy ahead of the official figures release precisely because we use high-frequency indicators from the private economy."
The anti-dollar drive spearheaded by Asia has spread to Europe, with France growing sour on the greenback's dominance. Here are 6 rising threats to the buck's supremacy of global trade.
- The dollar's supremacy in global trade faces fresh challenges as several countries float plans to use local currencies in commerce.
- Russia and Iran are working to create a gold-backed stablecoin, while France has pursued a trade deal with China in yuan.
- Here are 6 rising challenges to the greenback's dominance of international trade and investment flows.
The dollar's dominance of global trade and investment flows is facing a slew of new threats as more and more countries draft plans to boost the use of alternative currencies.
For some time now, nations from China and Russia to India and Brazil have been pushing for settling more trade in non-dollar units – with projects ranging from the use of local currencies to a gold-backed stablecoin and a new BRICS reserve currency.
Now, even Europe appears to be jumping on the anti-dollar bandwagon, with French president Emmanuel Macron recently warning against the continent's dependence on the greenback.
With movements to undermine the dollar's unipolar supremacy gathering momentum, it comes as no surprise that the buck's status as a reserve currency eroded in 2022 at 10 times the pace seen in the past two decades, according to Eurizon SLJ Asset Management.
Strategists at the asset manager found that the greenback's share of total global reserves fell to 47% last year, from 55% in 2021 and as much as two-thirds in 2003.
For decades, the US dollar has reigned supreme as the world's reserve currency and is widely used in crossborder trade, especially for commodities such as oil. Thanks to its relative price stability, investors see it as a safe-haven asset in times of heightened economic and geopolitical uncertainty.
The dollar was further bolstered last year by a surge in US interest rates that made it attractive to foreign investors seeking higher yields. It surged 17% during the first nine months of 2022, but has since lost some of its shine on the prospect that the Federal Reserve may soon end its rate hikes as inflation cools rapidly.
Against this backdrop come the latest threats to the greenback's reign — here are 6 currency projects from across the world that are ultimately aimed at undermining the dollar's supremacy.