... objectives, a concern already highlighted by US Treasury Secretary Jack Lew in 2016, [
20
] prompted countries of the rising South to reassess the risks of using Western financial infrastructures, trading in dollars, and holding dollar-denominated assets. De-dollarization emerged on the agenda of finance ministers and central bankers of non-Western states. Compared to its peak in 2013, China halved its holdings of US Treasury securities from USD 1.68 trillion to USD 822 billion in 2023, while Russia's holdings dropped to zero. [
21
]
Simultaneously,...
... international currencies, that the
bulk
of global monetary liquidity is generated. For example, in 2007–2008, the Federal Reserve Bank of New York opened temporary dollar swap lines for the central banks of 14 countries worth over $10 trillion to refinance the dollar liabilities of
lending institutions
operating out of those jurisdictions. The swap lines were discontinued in February 2010, but were reinstated three months later in a different format between the Federal Reserve System (FRS) and five key central ...
... time it will take, and the obstacle with which Renminbi has to overcome to directly challenge or offer an alternative to US dollar are long and rather not straight.
However all of these countries or the R6 have a currency that starts with R: the Chinese ... ... among these six economies is long overdue. The Sr. Management of NDB can easily expand the remit of the bank by entering trade finance and project finance between these six countries alone. The bank could ask its shareholders to deploy and commit some of ...
