Dollar Share in Reserves Drops Below 60%, Yuan Rises, Russian Diplomat Says

Dollar Share in Reserves Drops Below 60%, Yuan Rises, Russian Diplomat Says – According to a statement from a Russian representative, there is a noticeable increase in the proportion of currencies other than the U.S. dollar and the euro in international reserves. This trend is attributed to a rising number of countries seeking to utilize their own national currencies for conducting foreign trade transactions. 

Maria Zakharova, the spokesperson for Russia’s Ministry of Foreign Affairs, emphasized that the share of the U.S. dollar in international reserves has fallen below 60%, reflecting a growing preference for alternative currencies in global trade settlements. This information was reported by the official Russian news agency, Tass.

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The Russian diplomat remarked that this indicator for the status of the greenback was at 72% in 2002. “The euro has now fallen to 19%, from 28% in 2008. By the way, the yuan has risen to 3%, a threefold growth since 2016,” Zakharova added. The report did not mention the source of the data she quoted.

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Maria Zakharova also pointed out that numerous countries have intensified their endeavors to enable the use of their domestic currencies in cross-border transactions. According to this Russian government official, the Chinese yuan is currently the most actively promoted alternative currency in this regard. 

Promoting the utilization of local currencies is a top priority for the BRICS alliance, consisting of emerging economies, and Russia is one of its founding members. During the recent BRICS summit in Johannesburg, Russian President Vladimir Putin characterized the process of de-dollarization as an “irreversible process” within the BRICS nations, which include Brazil, Russia, India, China, and South Africa.

In a video message to participants at the BRICS Business Forum, Putin also highlighted that this transition is accompanied by efforts to create new mechanisms for mutual settlements. He underscored that as a result, the share of the U.S. dollar in export and import transactions within the BRICS group decreased to a mere 28.7% in 2022.

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In May of this year, the Managing Director of the International Monetary Fund, Kristalina Georgieva, expressed confidence that despite the trend of de-dollarization, the U.S. dollar will retain its status as a reserve currency. Earlier in August, a representative from South Africa within the BRICS alliance stated that the U.S. dollar will continue to play a significant role as a global currency.

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