The Rise of the Chinese Yuan: Challenging the Hegemony of the US Dollar

2023-06-11 08:58:33

The hegemony of the US dollar is seriously challenged by the rise of the Chinese yuan. This comes alongside Washington’s failed attempt to destroy Russia’s economy by weaponizing the greenback, Andrei Kostin, head of major Russian bank VTB, told Archyde.com on Friday.

Under current geopolitical circumstances, more nations are moving away from dollar and euro-denominated trade deals, while China is moving towards removing tight monetary policies, notes one of Russia’s most powerful bankers .

“The long historic era of US dollar dominance is coming to an end,” he said.

Radical changes are looming in the global economy, undermining globalization just as China assumes the role of the world’s leading economic power, the official said.

And to add that it was also dangerous for her to keep reserves invested in US Treasury bonds.

The status of the greenback as the dominant currency in the world has steadily eroded in recent years due to growing concerns over soaring US debt and sanctions using the currency as leverage.

VTB Bank has examined the use of Chinese national currency in settlements with third countries, according to Kostine. Last September, Russia, China, India and Iran further set a roadmap to gradually increase the share of national currencies in mutual settlements.

The US dollar has enjoyed the status of world reserve currency for more than a century, having ousted the pound sterling, recalls Archyde.com. Analysts at JPMorgan Chase reported in early June that the global economy was showing signs of emerging de-dollarization, amid growing efforts by Asian economies to challenge US currency hegemony.

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