Supersede US dollar: Yuan could become the main global reserve currency as early as the coming decade, according to the President of Russia’s VTB Bank. He advocates a complete and rapid abandonment of other “toxic” currencies in payment transactions.
The Chinese yuan could become the world’s main reserve currency, displacing the US dollar as early as the next decade. This opinion was expressed by Andrei Kostin, head of Russia’s VTB Bank, at the Russian-Chinese Economic Forum. He mentioned that the Bank of Russia is already investing in the Chinese yuan and that more than 70 percent of Russian-Chinese trade is in the yuan and ruble. Kostin stressed:
“China is now the second largest economy in the world, and in the near future it will be the first. There is every reason to believe that the Chinese yuan will be able to overtake the US dollar as the main reserve asset within the next decade. and replace the accounting currency of the world.”
The VTB boss also called for a complete move away from the US dollar and other “toxic” currencies in payments, the news agency said TASS.
Departure into a world without dollars
“The sooner China establishes a dollar-free payment and settlement model with such a key trade and economic partner as Russia, the more secure and stable its financial system will be in any scenario,” he said.
Like the British newspaper Financial Times previously reported, the proportion of global settlements in Chinese currency has more than doubled in the past year. In February 2022 it was 2 percent and in February 2023 it was already 4.5 percent (for comparison: the share of the euro is 6 percent). At the same time, the US dollar’s share of world trade has fallen by exactly the same amount – 2.5 percent.
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