Russia and China are reducing their dependence on the US dollar as a medium of exchange in bilateral trade – a development some experts say could lead to a “financial alliance” between the, as noted by the Nikkei Asian Review.
In the first quarter of 2020, the dollar’s share of trade between Russia and China fell below 50% for the first time on record.
The greenback was used for only 46% of settlements between the two countries.
The euro made up an all-time high of 30%, while their national currencies accounted for 24%, also a new high.
Analysts at Goldman Sachs recently warned that the US dollar’s status as a reserve currency is at risk due to ballooning fiscal deficit, a potential shift in favor of inflation at the Federal Reserve amid increased geopolitical hostilities, domestic unrest, and a resurgence of coronavirus.