Russia and China could develop a gold-backed currency that will seriously compete with the dollar. It is reported by Fox Business. Note that officials of Russia and China have not yet confirmed these plans.
Creating a new currency, even if secured by gold, is not so easy, the head of the analytical department of AMarkets Artem Deev emphasizes.
The euro has existed for more than 20 years, but has not become a full-fledged replacement of American currency. Previous attempts to create currencies based on a reference to the quotations of gold, not the dollar, were also undertaken, but were not successful (for example, in Libya, Muammar Gaddafi planned to launch golden dinar). China has been talking about the golden yuan for more than a dozen years, expert reminded to “Invest-Foresight”.
“This is not so much an economic question: the creation of a “golden” alternative to dollar means confrontation with the USA, an attempt to put under questioning U.S. hegemony in the global financial system. And, in a global scale, still there was no situation for such an attempt. However, in long-term emergence of a new currency based on gold is quite real. This will mean the end of the Pax Americana system – US leadership in the global political and economic system. And most likely, the Chinese yuan will become this currency,” – the expert believes.