China Daily: The consequences of China’s abandonment of the US dollar will be serious for the US
The US economy will face serious consequences if China refuses to use the dollar in international payments. About it informs China Daily.
According to the newspaper, Chinese exports to developing countries and a number of key market economies have already exceeded the volume of goods supplied by China to the United States, the European Union and Japan.
The authors of the article believe that a “new trade order” is being formed in the world, which can significantly change the global payment system. In addition, this will affect international foreign exchange reserves, the material says.
“If the United States is going to “disconnect” from China, other countries may choose the yuan as a currency for mutual settlements, stimulating increased de-dollarization and strengthening the status of China,” the newspaper writes.
It is also noted that in January-March, imports of US consumer goods fell on an annualized basis by 20.6 percent. According to the authors, if this continues, the position of the United States in world trade will weaken. This will accelerate the global process of de-dollarization, the material says.
Earlier, Ekaterina Fedyukovich, Candidate of Economic Sciences, an expert at the Analytical Center of the Synergy University, predicted the time frame in which countries would refuse to pay in the single currency – dollars. She believes that this can happen in the next decade.
On May 1, the head of the International Monetary Fund (IMF), Kristalina Georgieva, announced the gradual abandonment of the dollar in the world. At the same time, she added that there is no alternative for him yet.
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