FTO Coordinator Identifies De-dollarisation Signs In Global Economy
Fahad Shabbir (@FahadShabbir) Published July 09, 2023 | 01:30 PM
ISLAMABAD, (UrduPoint / Pakistan Point News - 9th Jul, 2023 ) :Coordinator to Federal Tax Ombudsman Meher Kashif Younis on Sunday said that the payment of oil imported from Russia in "Yuan" is continuation signs of de-dollarisation surfacing in the global economy.
Speaking at a seminar on " Impact of de-dollarisation on the health of the economy" organized under the aegis of Gold Ring Economic Forum,a strategic think tank, he said the sanctions that have frozen Russia out of the global banking system have seen a fresh push since March by the "BRICS" nations, Brazil, Russia, India, China and South Africa, to challenge the dollar's hegemony, said a press release.
He said " some signs of de-dollarization are emerging," adding the trend was likely to persist even as the Dollar maintains its "large footprint".
Efforts by BRICS countries and other major commodity exporters to loosen the dollar's stranglehold on global commerce have ramped up since the start of the war in Ukraine, which saw the U.S. freeze a large chunk of Russia's foreign reserves.
Since then Saudi Arabia and China have begun talks to settle Chinese oil sales with the yuan, Brazil and China have announced the phase-in of a yuan clearing arrangement for some trade between the two countries while China and Russia are also now doing a significant portion of their trade in yuan.
Meher Kashif Younis said the rise in Yuan payments has given a boost to Beijing's endeavours to internationalise its currency, with Chinese banks promoting its use specifically for Russia oil trade.
"This is part of the de-dollarisation move which is going on at the international level as the United States has been using economic sanctions as an instrument of war or punishment to the developing countries which is just a natural reaction.
He said Pakistan in its history received its first shipment of Russian oil and payment was made in Chinese RMB, and "Our target is to import one-third of our required oil from Russia to ease burden on people.
He further added, "This is the first time that in international trade we are using Chinese Currency as a currency of international settlement or trade settlement; this is just the beginning from the Pakistani side." Meher Kashif Younis said many other countries were also trading using currencies other than the US dollar.
Pakistan is currently grappling with a severe balance-of-payments crisis.
Trading in RMB is a strategy to reduce the country's dependence on the US dollar. He noted, "This move comes at a time when Islamabad's currency reserves are rapidly depleting, and the rupee is under pressure from mounting imports."he added.
Related Topics
Recent Stories
Pakistan marks World Press Freedom Day
High-level Saudi business delegation due on May 5
Stocks heat up as US labour market cools
President approves Tax Laws (Amendment) Bill 2024
Implementation of merit, justice to oppressed segments top priorities: CPO
Overseas Kashmir community delegation calls on AJK President, discusses latest s ..
Govt believes in freedom of press: Amir Muqam
Labour urges UK election after Tory losses
Health authorities asked for action against alleged illegal tenders at Services ..
Spain scraps national bullfighting prize sparking debate
Lahore High Court (LHC) Chief Justice Malik Shahzad Ahmad Khan visits Rawalpindi ..
ATC extends interim bail of PTI founder in 3 cases
More Stories From Business
-
CCP approves scheme of arrangement for restructuring of PIACL
7 hours ago -
High-level Saudi business delegation due on May 5
9 hours ago -
Stocks heat up as US labour market cools
9 hours ago -
Planning minister stresses need for establishing digital corridor
9 hours ago -
Burj Solar install Pakistan´s first distributed generation Wind Power project
9 hours ago -
TEVTA’s BoD decides capacity building, adoption of frugality
10 hours ago
-
US hiring slows more than expected in sign of cooler market
10 hours ago -
Stocks heat up as US labour market cools
11 hours ago -
Stocks heat up as US labour market cools
11 hours ago -
US hiring slows more than expected in sign of cooler market
11 hours ago -
PSX turns bullish, gains 1,244 points
12 hours ago -
Finance Minister for measures to enhance tax to GDP ratio
13 hours ago