Xie Xiaoyong outlines China's position on dedollarization

MINSK, 27 February (BelTA) –Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to the Republic of Belarus Xie Xiaoyong told BelTA about China's plans to reduce dependence on dollars in international settlements and increase the use of national currencies.

The diplomat dwelled on this topic: “After World War II, the United States spearheaded the efforts to create the Bretton Woods system, the International Monetary Fund and the World Bank, and using the Marshall Plan they developed an international monetary system with the US dollar at its core. The status of the dollar as the main international reserve currency helps the USA collect seigniorage from around the world. The USA buys the equivalent of $100 worth of goods and services from other countries using a $100 bill that costs only about 17 cents.”

“The hegemony of the US dollar is the main source of instability and uncertainty in the world economy,” the Chinese ambassador said.

“Amid the COVID-19 pandemic, the United States took advantage of its global financial hegemony and injected several trillion dollars into the world market. Those who are paying for this are mostly emerging economies,” Xie Xiaoyong continued. “In 2022, the US Federal Reserve stopped its ultra-loose monetary policy and started raising interest rates dramatically, which led to turmoil in the international financial market and a sharp depreciation of various currencies, such as the euro, which fell to its 20-year low. Many developing economies were cripped by strong inflation, devaluation of the national currency and capital outflow,” the diplomat noted.

“All economies worldwide need a stable, secure and predictable international monetary system more than ever,” the Chinese ambassador is convinced.