With global economic centers shifting East, diversifying currency baskets is becoming necessary, a Sichuan University professor says
Many nations are abandoning the US dollar because it is increasingly being used as a tool to “usurp” financial relations, Sichuan University Professor Huang Yunsong said on Friday. He made the remarks at the Eastern Economic Forum (EEF) in Vladivostok, Russia in a panel discussion on economic cooperation between Russia, India, and China.
The global trend towards using national currencies in trade has gained momentum amid unprecedented economic sanctions against Russia introduced by the US and its allies following the start of the Ukraine conflict. After being effectively blocked from the Western financial system, Russia has turned to alternate settlements, with many of its foreign partners following suit.
According to Huang, many countries now also look to diversify their currency baskets, and their motivation is based on three major factors: The actions of the International Monetary Fund, which, he says, “have a negative impact on the economies of countries,” practices implemented by the US, and wide-ranging global shifts in economic policies.
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“The US often usurps trade and financial relations by imposing dependence on the dollar on all participating countries,” Huang said, noting that most nations find this practice intolerable.
He added that the global “shift in economic development” and “the shift of economic centers to the East, to China and Russia” are also pushing nations to shift to using national currencies in business and trade.
Huang’s ideas were echoed by a fellow scholar from Russia, Professor Stanislav Tkachenko from St. Petersburg State University, who said de-dollarization “is a key for dismantling the American hegemonic system.”