EconomyWorld

US dollar dominance coming to an end

Close up of Chinese Yuan notes, with Mao Tse-tung

CEO of Russia’s state-run bank VTB Andrey Kostin points to the inevitable rise of the Chinese yuan

Exclusive News

The hegemony of the US dollar is seriously challenged by the rise of the Chinese yuan and by Washington’s failed attempt to wreck the Russian economy by weaponizing the greenback, Andrey Kostin, head of Russia’s banking major VTB, told Reuters on Friday, according to RT News.

The major banking figure said that under the current geopolitical circumstances more and more nations are shifting away from trade settlements in dollar and euro, while China is moving towards removal of strict currency policies.

“The long historical era of the dominance of the American dollar is coming to an end,” Kostin said, in an interview with the news agency. “I think that the time has come when China will gradually remove currency restrictions.”

According to Kostin, VTB has been discussing using the Chinese national currency in settlements with third countries.

“China understands that they will not become world economic power number one if they keep their yuan as a non-convertible currency,” he explained, adding that it was also dangerous for the Peoples Republic to keep reserves invested in US Treasuries.

The US dollar has been enjoying the status of world’s reserve currency for more than a century after it managed to subsume the British pound sterling. Earlier this month, JPMorgan Chase analysts said the global economy is showing signs of the emergence de-dollarization, against a background of rising efforts by Asian economies to challenge the American currency’s hegemony.

The greenback’s long-standing status as the world’s dominant currency has been steadily eroded in recent years due to mounting concerns over soaring US debt and widely implemented sanctions using the currency as leverage.

Read more

Related posts
AfricaEconomy

Uganda to increase state share in mining

Uganda is moving forward with plans to increase its state share in the mining sector, a strategic…
Read more
AfricaEconomy

Zimbabwe urged to emulate Kenya’s GenZ digital activism

Zimbabwe has been encouraged to look to Kenya’s vibrant Gen Z digital activism as a model for…
Read more
AfricaEconomyPolitics

Zimbabwean's new currency continues to depreciate

Zimbabwe’s new currency, the Zimbabwean dollar, continues to experience significant depreciation…
Read more

Sign up for Africa Insider’s Daily Digest and get the best of  news, tailored for you.

Leave a Reply

Your email address will not be published. Required fields are marked *