TEHRAN (Tasnim) – As the world’s currency and monetary equations have been subject to changes against dollar and in favor of “yuan” and “euro”, the reuse of the Asian Clearing Union has recently been put atop agenda of the Central Bank of Iran (CBI).
A review of the combination of Foreign Exchange Reserves (FOREX) of the central banks in the world shows that the dollar’s share at the end of 2022 was about 45 percent of the total foreign currencies that the central banks have kept in their treasuries.
It indicates that the standing of US dollar has been depreciating in the world’s foreign exchange reserves and the currency contest has been leaning in favor of euro and yuan during the recent years.
According to the International Monetary Fund (IMF), the total foreign exchange reserves of the central banks stands at $11.962 billion at present, $6,471 billion of which is kept in the United States.
In the same direction, the share of dollar in the world’s foreign exchange reserve has decreased from 56% in 2021 to 54% in 2023.
Given the significance of the financial crisis of the American banks and the possibility of an end to contractionary policies of the US Federal Reserve, which had led to the appreciation of US dollar in 2022, it now seems that the American greenback cannot retain its dominance in the world anymore. As a result, a serious competition will be expected between the US dollar on one side and euro and yuan on the other.
In the wake of the US sanctions imposed against Iran, Tehran’s financial transactions were minimized by the Asian Clearing Union (ACU). Now plans have been finalized to organize the meeting of the Union in May.
Eleven central banks, including from China and India, will take part in the meeting.