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Allocating part of Russian reserves in yuan will make global finances more stable — PM

"The quality of the reserve currency (yuan) is rather compatible with the level of development of the Chinese economy," Russian Prime Minister Dmitry Medvedev said

MOSCOW, November 5. /TASS/. Russia is interested in allocating part of its reserves in yuans which will make the global financial situation more stable, Prime Minister Dmitry Medvedev said in an interview with the Chinese Central Television (CCTV).

"The quality of the reserve currency (yuan) is rather compatible with the level of development of the Chinese economy, and this was recognized by international financial institutions. We are glad to hear that, I mean the opportunity to allocate part of our resources not only in dollar instruments or instruments nominated in euros (securities, other financial instruments) but also in instruments released in the national currency of the People’s Republic of China. This is good because it makes the general financial situation in the world more stable," Medvedev said.

The prime minister noted that the global crisis of 2008 raised the question of whether one can trust the international currency system based on one or two currencies — US dollar and to some extent euro.

"We started to think about that. In order for the world economy to function normally, the currency system must consist of a multi-currency bloc, it should be multi-currency. One element of such a multi-currency system, a more stable system in my view, is the emergence of yuan as a reserve currency," Medvedev said.

He also noted that financial institutions now are going through a new stage of development. "The most modern financial technologies that get a lot of attention now may start to be used rather soon, including blockchain technologies and everything connected with that. If all these technologies become part of financial life, it is very likely that many regulating instruments will disappear - those actively discussed just recently and those extensively used, including for instance SWIFT notifications and some others. This is the future, but we all should prepare for this future," the prime minister said.