A review by REGNUM news agency notes that against the backdrop of the anti-Russian sanctions, top Telegram Channels predict transformation of global financial system.

It is noted that the dollar may soon lose its unlimited dominance in the global financial markets and international trade.  

“And, although on the one hand this process is not fast, but on the other hand, it is already irreversible,” the review stresses.

The reasons for the current decline in the U.S. dollar are associated with anti-Russian sanctions.  

The Chinese yuan reportedly plays a key role in overthrow of the United States financial hegemony and it is predicted to become a full-fledged replacement for the dollar. 

Citing the Chinese Foreign Ministry, TASS reported on March 31 that Chinese companies intend to use more actively the Chinese currency in trade with Russia “on an equal and mutually beneficial basis.”  

“When making bilateral settlements, market participants can choose the currency according to their own needs,” the Chinese Foreign Ministry was cited as stating.    

Chinese diplomats consider that use of own currencies in the process of trade and economic interaction can avoid currency risks and reduce costs associated with currency exchange.  

According to TASS, Russian Finance Minister Anton Siluanov said in mid-March that when developing trade relations with China, Russia will use a share of gold and currency reserves denominated in the China’s yuan.  

The Chinese yuan is a reliable reserve currency, Anton Siluanov said on the air with the Rossiya-24 TV Channel on March 14.  

"The Chinese yuan - a portion of gold and currency reserves is kept in this currency.  When developing trade relations with China, we will use a share of gold and currency reserves denominated in the China’s yuan. The yuan remains at present one of such sources of currency reserves of our country and we will use it in all aspects," the Minister said.

A half of gold and currency reserves of the Bank of Russia - about US$300 billion - were frozen because of sanctions, Siluanov said earlier.

"The Chinese yuan - a portion of gold and currency reserves is kept in this currency. When  

Analytics website Best Stocks noted last month that more than 28 countries around the world use the yuan for settlements on economic transactions.

As far as economic cooperation between Tajikistan and China is concerned, the countries opened their currency swap line in late 2015.  

A currency swap line is an agreement between two central banks to exchange currencies. This allows a central bank to obtain foreign currency liquidity from the central bank that issues it – usually because they need to provide this to domestic commercial banks.  

An agreement on the currency swap line between the National Bank of Tajikistan (NBT) and the People’s Bank of China  for 3 billion yuan (equivalent to about $470 million at the rate of 2015) was to be in effect for three years. 

The NBT noted at the time that said that the fuds attracted from the Chinese bank were planned to be used to support the somoni’s exchange rate, regulator’s payment balance as well as lending to small and medium-sized businesses through Tajik second-tier banks.   

The agreement was expected to weaken intermediation of the third currencies in the bilateral trade between Tajikistan and China.  

In 2018, Amonatbonk (Tajikistan’s savings bank) and the China Development Bank reached the preliminary agreements on opening credit lines in yuans for Tajik importers of Chinese products, first of all equipment and technologies. 

The term of loans was determined at 3-5 years and annual interest rate on these loans is set at 12 percent.  

However, the parties failed to finalize all issues – the coronavirus pandemic  postponed opening of credit lines indefinitely.