Can Chinese yuan replace dollar as hegemonic currency?

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Over the next 10 years, there will be a tendency to create alternative financial instruments to the dollar, said Herman Gref, chief executive of Russian bank Sberbank.

In an interview with Russian channel Rossiya 1, Gref explained the economic sense of de-Dollarization.

The executive director noted that the US is the most advanced in the world today in the technological sphere, highlighting that technologies have become instruments of geopolitical pressure. Gref predicts new alternative financial instruments, for example, Chinese yuan or euro may take the place of the US dollar.

“The Chinese currency is more promising when it comes to the speed of its development and introduction,” said Gref, noting that “if we imagine what dollar instruments would stop being used by us overnight, then it would simply start collapsing, there are other instruments in the world.”

Meanwhile, the Venezuelan ambassador to the UN’s representation in Geneva, Jorge Valero, said that talks are currently being held with Russia on the use of the ruble in bilateral transactions.

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“Yes, we now try to conduct our [financial] operations through another currency, including the crypto-currency ‘petro’, which we have created,” Valero reports.

Valero underlined that a dialogue with Moscow is underway on the issue of changeover to the use of the Russian currency, the ruble.

The petro was launched on February 20. Venezuela was the first country with its own criptomoeda, which is supported by oil reserves. In the beginning, Maduro fixed the value of 1 petro per 1 barrel of Venezuelan oil, or $60, which now equals 9,000 bolivars according to the official quotation.

According to the ambassador, the sanctions introduced by the US against Venezuela and the blocking of Venezuelan bank accounts in dollars have negatively influenced the country’s economy. Now Caracas has problems in access to international financing, investments in the oil sector and in the restructuring of its foreign debt.

On January 28 Washington announced the introduction of more sanctions, this time against the national oil and gas company PDVSA.

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