EDITOR NOTE: The total elimination of US dollars from Russia’s National Wealth Fund is nothing new. The process began quite some time ago, and it came to completion last week. In its place is the yuan, whose 30.4% allocation is second only to the Euro’s 39.7%. Not only does this allocation signal confidence in China’s economy and currency--Russia is well aware of China’s “dual-circulation” strategy to attain world reserve currency status by 2050. Given the rapidly disintegrating state of the dollar, there’s a real possibility that China’s agenda may finally match and defeat America’s long-standing monetary hegemony. Money printing and deficit spending is rapidly destroying America’s currency. On the bright side, the greenback’s collapse is also gold’s (and silver’s) reckoning. And purchasing non-CUSIP gold and silver for your own personal reserves is one way to survive and thrive in the decades-long global monetary reset to come.
Beijing has welcomed Russia’s decision to cut the US currency from its National Wealth Fund and give the yuan a bigger role, China’s Foreign Ministry has announced.
Last week, Russia fully eliminated the US dollar from its National Wealth Fund, reducing its share from 35% to zero. Meanwhile, it raised the amount of Chinese yuan in the fund to 30.4%, which put it in second place after the euro with 39.7%.
Foreign Ministry spokesman Wang Wenbin said Russia’s action shows confidence in China’s economic development and the future of the countries’ cooperation. He stressed that China would continue to boost cooperation with Russia, which he dubbed mutually beneficial, while supporting its ally in international and regional affairs.
China has firm belief in its currency, with high hopes of it becoming the world’s ‘currency of choice’ by 2050 under the country’s so-called dual circulation strategy. First mentioned at a meeting of China’s policy-making committee in mid-May, the initiative shifts the focus of the country’s economic development to its domestic market, or internal circulation, aiming to make China less reliant on the current export-oriented development strategy (external circulation).
China has also been stepping up efforts to globalize the yuan by launching a pilot digital yuan program, as well as setting up a joint venture with SWIFT, the network that enables financial institutions to exchange information about banking transactions.
Originally posted on RT