It has been revealed that the CEO of Russia’s second-largest bank said that the dominance of the US dollar is coming to an end. Check out the latest reports about this below.
US dollar dominance is addressed
The chief executive of Russia’s second-largest bank says that the US dollar is on the verge of losing its role as the world’s dominant currency. This is happening amid the rise of the Chinese yuan.
In a new interview with Reuters, VTB Bank CEO Andrey Kostin made sure to highlight the fact that the move by the United States and its allies to block Russia from accessing hundreds of billions of dollars worth of gold and foreign exchange reserves is driving many nations to use currencies other than the USD to settle international trades.
He believes that the yuan could end up usurping the dollar as China appears to be on the path of loosening its extensive currency controls.
“The long historical era of the dominance of the American dollar is coming to an end. I think that the time has come when China will gradually remove currency restrictions.”
In China, individuals and institutions cannot freely move money in or out of the country – of course, this is unless they follow strict foreign exchange rules.
Kostin said the following:
“China understands that they will not become world economic power number one if they keep their yuan as a non-convertible currency.”
Countries consider alternatives to the US dollar
Treasury Secretary Janet Yellen just said that it’s reasonable to expect other countries to gradually look for alternatives to the US dollar as the geopolitical world stage evolves.
It has been just revealed the fact that speaking during The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System meeting, Yellen stated the fact that US sanctions might push other countries to diversify from the dollar – though she says it won’t be easy for them.
We suggest that you check out the latest reports about this in our previous article.
