De-dollarization gaining momentum fast: Chinese diplomat

China’s top diplomat in Iran says efforts by developing countries to ditch the US dollar are gaining momentum.

In an interview with Iran’s Tasnim news agency published on Monday, Ambassador Chang Hua said that the US dollar is in its weakest position ever as many countries have lost confidence in the currency.

That is a result of the United States using the dollar as a means of economic bullying, said Chang, adding that many developing countries are seeking to distance themselves from dollar-based international trade.

The comments come amid growing efforts by Iran and Russia, two major economies that are subject to US sanctions, to reduce the share of the dollar transactions from their trade ties.

Media reports published earlier this month suggested a top government official from Iran and Russian President Vladimir Putin had discussed at length in a meeting in Moscow in February the need to shift to other currencies in bilateral trade.

China, a major ally of Iran and Russia, and other major economies in Asia, including India and Malaysia, have declared their support for such de-dollarization projects.

Chang said that China will continue to engage in bilateral and fruitful cooperation with Iran within the framework of international laws.

He once again reiterated his country’s opposition to unilateral sanctions imposed by the United States on Iran.

MG