Russia’s alternate-largest bank’s chairman says there's every reason to expect the Chinese yuan to replace the U.S. dollar as the world’s main reserve currency. He pointed out that the central bank of Russia has formerly embarked on investing its reserves in yuan, and over 70 of the trade turnover between Russia and China is settled in yuan along with the ruble.
VTB Bank President Expects Chinese Yuan to Replace US Dollar as World’s Reserve Currency
Russia’s VTB Bank Chairman Andrey Kostin reportedly spoke at a Russian-Chinese business forum in Shanghai last week that the Chinese yuan will replace the U.S. dollar as the world’s reserve and agreement currency in the coming 10 years.
“ China is currently the world’s alternate-largest economy and will soon come initial, ” he was quoted by Sputnik as telling. The executive added:
There is every reason to expect that the Chinese yuan will replace the U.S. dollar as the world’s main reserve and settlement currency as early as the next decade.
“ In fact, the central bank of Russia is formerly investing its reserves in yuan, and further than 70 percent of trade turnover between Russia and China is settled in yuan together with the ruble, ” Kostin remained.
The VTB Bank chairman clarified that the financial and financial system that has been in place for decades ensures the hegemony of the U.S. and its Western allies, with the USD and the euro accounting for three-quarters of global agreements. He stressed that while the dollar is the world’s main reserve currency, the collective West, particularly the U.S., has been utilizing the USD as a weapon.
In February, the U.S. Treasury Department published “ unprecedented ” and “ expansive ” sanctions against VTB Bank and Sberbank — Russia’s two largest banks.
Russia and China have been increasingly strengthening their economic ties and utilizing their national currencies in trade deals. In April, the Chinese yuan surpassed the U.S. dollar as the most traded currency in Russia. This trend is expected to continue in the future as both countries seek to downgrade their dependence on the U.S. dollar.
Numerous people have warned that the weaponization of the U.S. dollar will guide to the USD losing its global reserve currency status. A growing number of countries are pushing for the usage of national currencies to downgrade their dependence on the U.S. dollar. The BRICS economic bloc has been ramping up its de-dollarization efforts and has proposed a common currency. Ten Southeast Asian nations have agreed to promote the usage of national currencies and newly top officials of nine Asian countries met in Iran to discuss de-dollarization measures. still, the International Monetary Fund (IMF) doesn't see a “ rapid shift ” in USD reserves despite the rising de-dollarization trend.
(Kevin Helms, Bitcoin.com, 2023)