The United States is not afraid that the PRC and Russia will abandon the dollar, said on Tuesday, June 22, the head of the US Federal Reserve, Jerome Powell.
He was asked how he feels about the fact that the Chinese and Russian authorities intend to abandon the dollar in order to create a common financial union.
“This is not on our radars. The dollar is the world’s reserve currency. Another, who could compete with him, is close, ”he said at a hearing in the US Congress. The broadcast was conducted by the TV channel CNBC…
Powell stressed that the strength of the dollar lies in effective American democratic institutions, open markets, and low inflation.
On June 4, the Russian Ministry of Finance decided to zero the dollar’s share in the structure of the National Welfare Fund (NWF). The head of the department, Anton Siluanov, noted that this initiative is justified, since there is currently an increase in sanctions threats against Russia from the United States. He also called the dollar a political currency.
On the same day, Russian President Vladimir Putin said that US actions are damaging the dollar as the world’s reserve currency.
According to the Belgian economist, the head of Bank Degroof Petercam Bruno Kolman, Russia, refusing dollar assets in the structure of the NWF, acts like all great powers. Thus, it diversifies assets and increases the share of gold in reserves.