Challenging the Dollar Dominance?
During Russian President Vladimir Putin’s flying visit to Beijing on February 4, China and Russia signed an oil and gas deal worth hundreds of billions of U.S. dollars. What makes the contract stand out, however, is that it will be settled in euros. This has led some to speculate about the move’s underlying intentions and its impact on the status of the dollar. Together with China’s introduction of the digital yuan, one might wonder: Will this mark the end of the worldwide dollar dominance?
According to the going monetary and banking theories, major international currencies should bear three important features: stable value anchoring; convenience in use; and open current and capital accounts of issuing countries or country groups.
Value anchoring
Major international currencies must reflect strong
