US responsible for de-dollarization, says IMF

Washington’s policies and actions have compelled most countries across the world to seek alternatives to US dollar, said International Monetary Fund’s (IMF) executive director for Russia, Aleksei Mozhin. In an interview with RIA Novosti, Mozhin said the call for de-dollarization has been gaining momentum with many countries switching to trade in yuan not only with China, but also with third countries. “More nations are ramping up the use of alternative currencies, particularly the Chinese yuan, in cross-border transactions,” he said. ‘Process of de-dollarization has begun’ “It’s clear that it (de-dollarization) will not happen at once, but the process has begun,” Mozhin said, anticipating a steady decline in the dominance of dollar. Mozhin also highlighted some US officials sounding the alarm on the risk of the dollar losing its status of the world’s reserve currency. He further associated the US currency’s long-standing dominance in the global economy with a lack of competition since most international settlements and deposits worldwide are in dollars. Recently, US Treasury Secretary Janet Yellen acknowledged that the use of financial sanctions could erode the dominance of the dollar. Similarly, Senator Rand Paul warned that dollar is losing its hegemony. “I think our foreign policy has something to do with that … We’ve pushed all of our adversaries farther and farther away from us and closer and closer together,” Paul said. ‘Wrong for dollar to be widely used globally’ Mozhin further claimed that the US government has been using dollar “for the purposes of national interests” and “the economic and financial obligations of one country,” which is “wrong” for the currency to be widely used globally. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.