Moscow Exchange says it will stop accepting US dollars as collateral amid Russia's move away from 'toxic' currencies

The Moscow Exchange will no longer accept US dollars as a security from August 29.

The exchange did not explain the new policy or provide further details, but it had already limited the use of the dollar to 25% from 50%. In Russia, the Moscow Exchange is the largest.

Russia has been hit with a number of international sanctions. Half of the country's foreign exchange reserves can't be used to counter Western economic sanctions.

Western currencies such as the US dollar and the euro are popular in global trade. The central bank said earlier this month that it would like to add the Chinese yuan, Indian rupee, and Turkish lira to its wealth funds.

This came after the Bank of Russia's proposal for state firms to convert foreign-exchange holdings into non-sanctioning countries. According to a translation of the report, the move is to make businesses not use toxic currencies.

According to the news outlet, it makes sense for companies with savings in unfriendly countries to move them into other currency. The US, Australia, UK, and EU countries were included in a list of "unfriendly countries" published by Russia.