De-dollarization gains momentum

ISLAMABAD, July 31 (Online): Leader of the business community and former President ICCI Shahid Rasheed Butt on Friday said that US continues to abuse dollar to meet political ends which has resulted in popularity of the concept of de-dollarization.

Four years back the 95 percent of bilateral trade between China and Russia was dependent on dollar while it has now dropped by 50 percent in the first quarter of 2020, he said.

Similarly, 46 percent of trade between Russia and EU is conducted in Euro and many other countries are trying to reduce their dependence on USD.

Shahid Rasheed Butt said that Russia has rubbished the US offer to join hands against China while India has proved itself ineffective leaving Washington with little options.

He said that tensions between the US and China can bifurcate the global trading, financial and political systems.

The trade tensions between the two economic powers have developed into diplomatic strains and it can become military confrontation, he said.

He said that foreign policy has looked to balance the country’s relationship with the United States and China for decades but it may not work in the future for which policymakers should be prepared.

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