Kostin Says Us Dollar Dominance Is Near

last updated on

Kostin Says Us Dollar Dominance Is Near

Kostin (Russian Banker) Says US Dollar Dominance Is Near

Kostin is one of the world's most powerful bankers from Russia, and he believes the end of the US Dollar dominance is just around the corner. He cited the rising power of the Chinese Yuan and its growing use in global trading.

Andrei Kostin is the CEO is VTB which is the 2nd largest bank in Russia which means anything said by him has a lot of value. He also made it clear that China is taking on the role of global economic power by pushing aside the United States of America.

China Will Remove Currency Restrictions

Kostin added that the recent moves of freezing funds by the European Union & the USA would force a lot of countries to settle their payments without using USD and Euro.

This will create a buffer that could be used by China and its currency Chinese Yuan. He also added that China is planning to remove the currency restrictions.

Kostin said that now even China understands that the path to becoming the #1 economic power is to change their stance on Yuan's conversion. For now, Yuan is a non-convertible currency which is hindering its use in global trade.

Kostin also commented on how it was a risky move on the part of China to keep the majority of its reserves invested in US bonds.

If we look back, the US Dollar is the preferred currency for global trade since the start of the 20th century. Before that, the same role was assumed by the Pound Sterling, which tells us change is inevitable.

According to JPMorgan, the de-dollarisation signs are becoming more apparent in the global economy. In addition, the US's struggles with raising the debt ceiling every few years are also undermining the USD's role as a stable reserve currency.

For now, it appears that everything is hanging on China's decision to make Yuan a convertible currency. Doing so will open doors to a new era where everything will be changed.

Trending Stories