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Yuan to replace dollar as global reserve currency in coming decade — VTB CEO

Andrey Kostin urged to fully abandon the dollar and other ‘toxic’ currencies in payments

SHANGHAI, May 23. /TASS/. China’s yuan may become the main global reserve currency replacing dollar, in the coming decade, president and chairman of Russia’s VTB Bank Andrey Kostin said on Tuesday.

"China is the world’s second economy today, whereas it will become the first in the near future. There is every indication that particularly the Chinese yuan may replace the US dollar as the main global reserve and accounting currency in the coming decade," he said at a Russian-Chinese Business Forum in Shanghai.

The Bank of Russia already invests in the Chinese yuan, whereas in mutual Russian-Chinese trade the yuan together with the ruble account for more than 70% of payments, Kostin noted. Amid this background, he also urged to complete the development and introduce the digital yuan and the digital ruble as soon as possible, as well as implement measures connected with ensuring secure transactions between the two countries.

Chief executive of Russia’s second-biggest lender VTB also urged to fully abandon the dollar and other ‘toxic’ currencies in payments. "The sooner China refines the concept of payments and settlements abandoning the dollar with such a large trade and economic partner as Russia, the more protected and sustainable its financial system will be under any scenario," he explained.

Russian Finance Minister Anton Siluanov said in April that the ruble and yuan were already replacing the dollar in mutual settlements between Russia and China.

Earlier, Russian President Vladimir Putin said in an article for the People's Daily newspaper that the share of settlements in national currencies between Russia and China was growing.