Tuesday, May 16, 2017

U.S. runs the threat of losing dollar hegemony if they don't join in on Silk Road according to economist

Following last weekend's Belt and Road Forum, Yaroslav Lissovolik, the Chief Economist for the Eurasian Development Bank, stated that the Silk Road project will have the power to wean member nations off the dollar, and allow countries to use their own currencies in direct bi-lateral trade.

Ironically for the U.S., who desperately needs the rest of the world to continue using dollars as the global reserve currency, their rejection of joining in with the Belt and Road initiative could actually hasten their downfall as the project will provide the perfect opportunity for a critical mass of de-dollarization.

According to chief economist of the Eurasian Development Bank Yaroslav Lissovolik, the implementation of the project will help to reduce the dependence on the US dollar and increase the role of the national currencies in Eurasian countries. 
"The implementation of such a megaproject could be used to increase the role of national currencies, contribute to the de-dollarization of the countries in Eurasia and reduce their dependence on the US dollar. In addition, it could help increase the role of other currencies, especially those of emerging markets," the expert said during a conference, organized by Rossiya Segodnya International Information Agency. 
According to Lissovolik, the initiative could help create "new reserve currencies and strengthen the yuan as a reserve currency in international financial relations." 
"This issue is very important, because it gives a chance to partially affect the financial architecture of Eurasia," he said. - Sputnik News

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