Russian Banker Predicts End of Dollar Dominance as Global Power Shifts

Russia’s second-largest bank’s president has predicted the extremity of U.S. dollar dominance. He believes that the Chinese yuan volition regenerate the U.S. dollar arsenic the ascendant currency. “I deliberation that the clip has travel erstwhile China volition gradually region currency restrictions,” helium noted, adding that “China understands that they volition not go satellite economical powerfulness fig 1 if they support their yuan arsenic a non-convertible currency.”

VTB Bank President Predicts End of U.S. Dollar Hegemony

Andrey Kostin, the president of state-controlled VTB, Russia’s second-largest bank, discussed the imaginable extremity of U.S. dollar dominance successful an interrogation with Reuters, published Friday. He expressed his content that the epoch of U.S. dollar dominance is drafting to a close, attributing it to the expanding prominence of the Chinese yuan and the planetary designation of the consequences resulting from unsuccessful Western sanctions aimed astatine undermining Russia during the Ukraine crisis.

According to him, the U.S. and the European Union would suffer owed to their moves to frost hundreds of billions of dollars of Russian sovereign assets. This prompted galore countries to ramp up efforts to displacement distant from utilizing the U.S. dollar and settee trades successful nationalist currencies, including the BRICS nations (Brazil, Russia, India, China, and South Africa), 10 ASEAN subordinate countries, and nine much Asian countries. The BRICS economical bloc besides has a connection for a communal currency that is expected to beryllium discussed astatine their upcoming leaders’ summit.

The Russian banker stressed:

The agelong humanities epoch of the dominance of the American dollar is coming to an end.

“I deliberation that the clip has travel erstwhile China volition gradually region currency restrictions,” helium added. “China understands that they volition not go satellite economical powerfulness fig 1 if they support their yuan arsenic a non-convertible currency.”

Last month, helium expressed a similar opinion successful an interrogation with Sputnik. “There is each crushed to expect that the Chinese yuan volition regenerate the U.S. dollar arsenic the world’s main reserve and colony currency arsenic aboriginal arsenic the adjacent decade,” the banker shared.

Kostin besides commented connected the sanctions imposed connected him and his slope by the U.S. government. In February 2022, the U.S. Treasury Department announced “unprecedented” and “expansive” sanctions against VTB Bank and Sberbank — Russia’s 2 largest banks.

Moreover, the U.S. imposed sanctions connected Kostin successful 2018 owed to Russia’s alleged disruptive actions connected the planetary stage. Subsequently, helium was besides subjected to sanctions by the European Union and Britain, with the second referring to him arsenic “a adjacent subordinate of Putin.” Kostin expressed his presumption that these sanctions were unjust and driven by governmental motives, predicting that they would yet person antagonistic consequences for Western countries.

Regarding the Russia-Ukraine war, the banker warned:

We person already entered into a blistery warfare … It is not acold erstwhile determination are truthful galore Western weapons and a batch of Western services and subject advisers involved. The concern is worse than successful the Cold War, it is precise hard and alarming.

Kostin opined: “Sanctions are bad, and we endure from them, of course. But the system has adapted … At the aforesaid time, we expect that sanctions volition intensify, they volition beryllium tightened, immoderate windows volition beryllium closed, but we volition besides find different opportunities.”

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