China may reduce US dollar’s influence in the world (Exclusive)
Baku, Azerbaijan, Oct. 5
By Taleh Mursagulov - Trend:
China has a real tool to reduce the share of the US dollar in foreign economic operations, Zhannur Ashigali, associate director of the Sovereign Ratings and Forecasting Group at ACRA (Analytical Credit Rating Agency), told Trend Oct. 5.
He said that the political focus on using the national currencies in mutual settlements is increasing in the world. This mainly concerns reducing the value of the US currency by China, Turkey and Russia for cross-country transactions, he noted.
In particular, he added that namely China can significantly reduce the influence of the US dollar on the major economies of Asia, as well as Africa, and as a result, change the role of the US currency in the world.
Earlier, Turkish President Recep Tayyip Erdogan said that Turkey first of all is preparing to abandon the US dollar in settlements with China, Russia and Iran, and also admitted the possibility of creating a similar system with European countries.
In addition, European Commission President Jean-Claude Juncker in September called “absurd” the situation when Europeans have to buy their own goods for US dollars, and French Finance Minister Bruno Le Maire openly declared that he wants to have financial instruments that are “fully independent” from the US.
Meanwhile, Head of Russia’s Ministry of Economic Development Maksim Oreshkin said that the ministry, together with the Ministry of Finance and the Bank of Russia, had already prepared proposals for de-dollarization of the economy.