Russian Bank President Predicts the Yuan Will Replace Dollar as Global Reserve Currency
Jose Nino
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On May 23, 2023, the president and chairman of Russia’s VTB Bank Andrey Kostin declared that the Chinese yuan will replace the United States as the main world reserve currency
“China is the world’s second economy today, whereas it will become the first in the near future. There is every indication that particularly the Chinese yuan may replace the US dollar as the main global reserve and accounting currency in the coming decade,” he remarked at a Russian-Chinese Business Forum in Shanghai.
The Bank of Russia is currently investing in the Chinese yuan, whereas in mutual Russian-Chinese trade the yuan together with the ruble make up over 70% of payments, per Kostin’s analysis of the situation. Against the backdrop of these developments, he also called for the completion of the development and introduction of the digital yuan and the digital ruble as soon as possible. On top of that, Kostin demanded measures connected with securing transactions between the two countries be implemented.
Furthermore, Kostin called for the full abandonment of the dollar and other ‘toxic’ currencies in payments. “The sooner China refines the concept of payments and settlements abandoning the dollar with such a large trade and economic partner as Russia, the more protected and sustainable its financial system will be under any scenario,” he commented.
Russian Finance Minister Anton Siluanov said back in April that the ruble and yuan were already in the process of replacing the dollar in mutual currency settlements between China and Russia.
The dollar’s demise will become an inevitability if the US doesn’t get its economic house in order. For one, the US’s reckless fiscal policies combined with its easy money policies have made this development an inevitability. Should the US not correct course, the country will undeniably fall into pauper status.
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