China’s Foreign Ministry has announced that Beijing has welcomed Russia’s decision to cut US currency from the National Wealth Fund and give the yuan a major role.
Russia completely eliminated the US dollar from its wealth fund and reduced its share from 35% to zero. Meanwhile, the yuan of the fund was raised to 30.4%, second only to the euro at 39.7%.
Foreign Ministry spokesman Wang Wenbin said Russia’s actions show confidence in China’s economic development and the future of national cooperation. He emphasized that China will continue to strengthen its cooperation with Russia, which he dubbed as mutually beneficial, while supporting its allies on international and regional issues.
China firmly believes in its own currency and strongly hopes that it will become the world’s “choice currency” by 2050 under the so-called dual distribution strategy. First mentioned at China’s policy-making committee in mid-May, this initiative shifts the focus of China’s economic development to the domestic market or internal circulation, leaving China independent of its current export-oriented development strategy.
China is also stepping up its RMB globalization efforts by launching a pilot digital RMB program and establishing a joint venture with SWIFT, a network that allows financial institutions to exchange information about banking transactions.
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