MOSCOW, Apr 10 The world will need another ten years or so for a widespread transition to regional currencies in trade, while the dollar dominates here with a share of 60%, said in an interview with economist, former Minister of Finance of Russia Mikhail Zadornov.
“The process of gradual development of settlements in regional currencies continues. And most actively — in the post-Soviet space. From a global point of view, it will be quite long. We will see the results of such a change on the horizon of ten years, if we are serious,” he says.
Zadornov noted that the predominance of a particular currency is determined by only one thing — the costs for the buyer and seller of goods. The costs for settlements in dollars or euros, as in freely convertible currencies, are minimal, but the costs for settlements in non-convertible currencies are higher due to uncertainty.
In general, the global financial system is disintegrating due to the gradual creation of barriers, Zadornov added. However, while the dollar remains the main currency in international trade settlements, it accounts for approximately 60% of the turnover.
After the imposition of sanctions against Russia by Western countries, which banned the Central Bank and the Ministry of Finance from conducting transactions in dollars and euros and froze reserves countries in these currencies in the world began to actively switch to national currencies in trade. For example, China began to buy oil from Saudi Arabia for yuan and agreed with Brazil on trade in their currency, India and Malaysia transferred trade to rupees, and ASEAN intends to transfer domestic operations to national currencies.
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