Russia Sees Alternative Currencies Replacing U.S. Dollar
The share of the U.S. dollar in international reserves has dropped below 60% as more countries use alternative currencies in international settlements, according to Maria Zakharova, the Spokeswoman of Russia’s Ministry of Foreign Affairs. Here are the key points:
- The U.S. dollar’s share in international reserves has decreased from 72% in 2002 to below 60%.
- The euro’s share has fallen from 28% in 2008 to 19%.
- The Chinese yuan has seen significant growth, rising from 1% to 3% since 2016.
- Many countries are actively promoting their national currencies for cross-border transactions.
- The yuan is currently the most actively promoted alternative currency.
During the recent BRICS summit, Russian President Vladimir Putin emphasized the importance of de-dollarization and the development of new settlement mechanisms. The share of the dollar in export and import transactions within BRICS has declined to 28.7% in 2022. However, the IMF and South Africa’s representative in BRICS still believe the dollar will remain a major global currency.
Hot Take
The decreasing share of the U.S. dollar in international reserves and the rise of alternative currencies like the Chinese yuan indicate a shifting global landscape. As more countries actively promote their national currencies, the reliance on the dollar for international settlements is diminishing. While some believe the dollar will maintain its reserve currency status, the trend towards de-dollarization suggests a growing diversification. This could have significant implications for the global economy and the influence of major currencies.
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