It appears that Russia is thanking China for not supporting a United Nations vote against the Kremlin as well as launching a lawsuit against Ukraine for a $3 billion loan repayment.
Speaking at the Economic Development Forum, Yevgeny Gavrilenkov, managing director and chief economist at Sberbank, stated that “China’s Yuan may become the third reserve currency in the in the future.”
“This forecast can be made on figures of domestic economic growth. Probably the country will keep high GDP growth rate and the GDP volume will increase to around 14-16 trillion U.S. dollars for a brief period of time, the indicators comparable to the European Union and the United States,” the chief economist of the nation’s biggest bank said.
“Meanwhile, Chinese securities are more attractive for the countries that have a surplus in economy, particularly the Middle East states; and China will obviously follow the path of securing the country’s assets.”
There have been numerous reports as of late that cite various initiatives to make the yuan as the globe’s next reserve currency. In addition, China itself has sped up its internationalization of the renminbi by doubling its daily trading band last week.
Indeed, nothing last forever and it’s inevitable that the United States dollar will step aside.