Source: CCTV News Client
Japanese media: Russia pays dividends to Japanese companies for energy projects in yuan
According to Japanese media "Nikkei Asia" reported on the 15th, in the context of the United States and the West constantly increasing sanctions against Russia, Russia has recently begun to use RMB to pay dividends to Japanese companies holding important oil and gas projects in the Russian Far East - "Sakhalin 1" and "Sakhalin 2".
According to Nikkei Asia, Gazprom, a subsidiary of Gazprom, recently completed the payment of dividends to the holders of the "Sakhalin" oil and gas project such as Mitsui & Co. and Mitsubishi Corporation by setting up RMB accounts in large Japanese banks.
Before the escalation of the Russian-Ukrainian conflict last year, Russia used the US dollar as the settlement currency and paid dividends to the shareholders of the "Sakhalin" oil and gas project about twice a year. After the escalation of the Russian-Ukrainian conflict, Japan followed the United States and the West to impose a series of economic sanctions on Russia, and was listed as an "unfriendly country" by Russia. Subsequently, Russia set up new companies to operate Sakhalin 1 and Sakhalin 2, and said that they would change the way dividends are paid.
Japan's Sakhalin Oil and Gas Development Company holds a 30 percent stake in Sakhalin 1, which is owned by Japan's Ministry of Economy, Trade and Industry and a Japanese trading company. Japan's Mitsui & Co. and Mitsubishi Corporation hold 12.5% and 10% stakes, respectively, in the Sakhalin 2 project.
"Nikkei Asia" reported that due to the impact of the United States and the West increasing sanctions against Russia, Russia's financial transactions using RMB as the settlement currency are increasing. In March, the share of the yuan in Russian foreign exchange transactions rose to a record 39%, while the share of the US dollar fell to 34%, according to the Central Bank of Russia.
Nikkei Asia, citing data from a British hedge fund, pointed out that last year, the dollar's share of global foreign exchange reserves fell 10 times faster than the average over the past 20 years. At present, the share of the dollar in global foreign exchange reserves has fallen from 70% in 2001 to about 58% at present.
President of Kenya: Why do you use dollars when you buy something from Djibouti?
At present, from Latin America, the "backyard of the United States", to Africa, the Middle East, and then Europe and the Asia-Pacific region, more and more countries have begun to plan or have implemented "de-dollarization" programs to strengthen local currency settlements in cross-border trade and investment.
Kenyan President Ruto recently called for local currency settlement of trade between African countries during his recent visit to Djibouti and reduce dependence on the US dollar. He even questioned why Kenyans buy things from Djibouti using US dollars.
Kenyan President Ruto: African integration requires the free movement of people and goods, but the "soul" of free trade is the way of settlement. Let me give you an example, a businessman who sells goods from Djibouti to Kenya, or a businessman who offers to sell goods from Kenya to Djibouti, needs to exchange dollars. How did the dollar become part of the trade between Djibouti and Kenya? Why? Why do we Kenyans buy from Djibouti in dollars? Why? There is no reason for this.
US Treasury Secretary: Sanctions have led other countries to seek alternative currencies to the US dollar
For the process of "de-dollarization", US Treasury Secretary Yellen also had to admit that the status of the dollar is declining. On the 13th, Yellen attended a hearing of the House Financial Institutions Committee, and she acknowledged in response to a question from lawmakers about the risk of de-dollarization that the dollar's global reserve currency status is declining. In addition, when asked whether U.S. sanctions will affect U.S. dollar trading, Yellen said some countries do seek other reserve currencies as a result of sanctions.
Texas Rep. Gonzalez: Is it true that the use of the dollar has decreased in recent years and has gone downhill when competing with other currencies?
U.S. Treasury Secretary Yellen: There has indeed been a certain increase in holdings of other reserve assets, which is also to be expected in the process of continuous development of the world economy. We should also anticipate the diversification of reserve assets.
Rep. Gonzalez of Texas: So you mean, we should expect less use of the dollar?
U.S. Treasury Secretary Yellen: Over time, we should expect that the share of other assets in the reserve assets of various countries will gradually increase, and the diversification of reserve assets is a natural trend.
Yellen also acknowledged that because the dollar is an important tool for U.S. foreign sanctions, other countries will naturally "look elsewhere" for security reasons.
U.S. Treasury Secretary Yellen: Of course, some of our sanctions are achieved through the dollar and the role of U.S. banks in the financial system.
Rep. Gonzalez of Texas: When we impose sanctions on other countries, do we have to take into account that other countries may seek other currencies to transact, and is that something we should be worried about?
U.S. Treasury Secretary Janet Yellen: When we impose sanctions on other countries, it is true that countries that are afraid of being targeted by sanctions will actively look for tools other than the dollar to trade.
It is only a matter of time before the hegemony of the dollar ends
For a long time, the United States has abused the hegemony of the US dollar, passed on domestic crises, harvested world wealth, and did not hesitate to damage the economic and financial stability and well-being of other countries. Those countries that are deeply poisoned by the hegemony of the US dollar have explored the path of "de-dollarization" by diversifying currency reserves, establishing local currency settlement mechanisms and strengthening international cooperation, and directly say "no" to the US dollar with practical actions.
Since the beginning of this year, the actual action of "de-dollarization" of various countries has become more intensive.
Pakistani Oil Minister Malik said on June 12 that Pakistan settled the cost of importing Russian crude oil in yuan for the first time; On April 17, Bangladesh and Russia agreed to use RMB to pay for Russia's nuclear power plant project in Bangladesh; On April 1, India announced that trade with Malaysia could be settled in Indian rupees. And the day before, India had just indicated that it was ready to trade rupees with more countries with a shortage of dollars in foreign exchange reserves; On March 31, ASEAN adopted a local currency trading plan to strengthen the use of local currencies and reduce dependence on major international currencies, mainly the US dollar, in cross-border trade and investment.
Italian financial expert Jia Kai: The dollar is still the anchor of the world's financial system, but its position may become weaker and weaker over time. Other currencies will rise in importance and the international financial system will become more diversified. It is no longer a system dominated by the dollar.
Bangladesh's "Financial Express" commented that as the United States continues to use the US dollar as an instrument to sanction and suppress other countries, countries including many US allies are considering adopting a new payment system to accelerate the process of "de-dollarization" and reduce dependence on the US dollar. The article believes that the trend of "de-dollarization" continues to advance, which is caused by the weaponization of the dollar, and also because many countries gradually realize that relying on a single dominant currency will cause geopolitical risks, cyclical liquidity risks and inflation crises, and therefore no longer trust the dollar. This dynamic underscores the fact that the dollar is losing its dominance in a multipolar world.
Qatar's "New Arabia" daily website said that the risk caused by the abuse of sanctions by the United States has prompted more and more countries to seek alternative currencies to the US dollar, and the question now is no longer "whether the hegemony of the dollar will end", but when it will end.
Deputy Speaker of the National Assembly of South Africa Zenoli: If a country's currency dominates internationally and carries out arbitrary weaponization and has a negative impact on other countries, it is an unfair and discriminatory practice and an abuse of power.