Russian Bank CEO Predicts Rising Chinese Yuan and BTC

[ad_1]

VTB Bank CEO Andrey Kostin criticizes actions preventing Russia from accessing gold and currency reserves. China recognizes the limitations of maintaining the yuan as a non-convertible currency.

In a recent interview with Reuters, Andrey Kostin, CEO of VTB Bank, Russia’s second-largest bank, said the moves by the United States and its allies to block Russia from accessing its large reserves gold and currencies worth hundreds of billions of dollars force many countries to opt for currencies other than the US dollar to carry out international transactions.

According to him, the crisis is causing profound transformations in the global economy, eroding the concept of globalization precisely when China is assuming the role of a leading global economic force. Kostin further said that the long historic era of US dollar dominance is coming to an end, I believe the time has come when China will gradually remove currency restrictions.

Kostin said that in China, individuals and institutions face strict foreign exchange regulations that restrict the free flow of money to or from the country.

He further noted that China recognizes the limitations of maintaining the yuan as a non-convertible currency if it aspires to become the world’s leading economic power. In addition, he expressed concern about the potential risks of China’s decision to invest its reserves in US sovereign bonds.

Since the 20th century, especially when it overtook the British pound as the world’s reserve currency, the US dollar has held a dominant position. However, JPMorgan recently stated that signs of de-dollarization are emerging within the global economy.

China’s remarkable economic growth over the past four decades, coupled with the fallout from the conflict in Ukraine and the ongoing debates around the US debt ceiling, has triggered renewed scrutiny of the dollar’s position.

Follow us for the latest crypto news!

Russia responds

Amid ongoing discussions between Vneshekombank (VTB), Russia’s second-largest bank by assets, and countries other than China over the use of the yuan for trade settlements, Kostin’s remarks are important. . The ongoing debate is gaining momentum over fears that Washington is using the global financial system, denominated in US dollars, as a weapon against Russia in light of the Ukraine conflict.

These concerns are forcing countries around the world to seek alternative currencies for trade, as sanctions imposed on Russia for its invasion of Ukraine have raised alarm bells among world leaders and business figures regarding the extent of Washington’s influence.

According to Kostin’s statement reported by Reuters, he claimed that “we have already entered a hot war. It is not cold when there are so many Western arms and so many Western military services and advisers involved. The situation is worse than during the cold war, and it is very difficult and alarming. Despite the hard-hitting sanctions targeting Russia and its economy, Kostin expressed confidence in the country’s ability to adapt.

No spam, no lies, only ideas. You can unsubscribe at any time.

As reported in April, VTB suffered a significant loss of $7.7 billion in 2022 due to Western sanctions against Russia. However, after acquiring a competing Russian bank, the bank expects to post record profits in 2023.

Crypto News Flash does not endorse and is not responsible for the content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any action related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned.

[ad_2]