Zhu Min, executive vice president of the Bank of China says the Federal Reserve is killing the dollar.
“It’s a classic Triffin Dilemma,” he said. The Triffin Dilemma refers to the problem of balancing national and global interests when using a national currency as a global reserve currency.
“Either we ask the US to take the whole responsibility of the world economy with the dollar as global legal tender or else we need something else as an anchor and the IMF’s Special Drawing Rights could at least balance the dollar,” Zhu said.
“But we are seeing a new player in the international arena — that’s the Renminbi,” he added.
“It will take a while before the Renminbi will be convertible and as such it will not play an important role as international tender, but an interesting thing is happening,” he said. “The Renminbi is not convertible but its circulation is growing. More and more it will increasingly be used in trade settlements.”
You can see part of the interview here.